The UK government has recently reaffirmed that the private rented sector (PRS) remains stable following the introduction of the Renters’ Rights Act, despite concerns about landlords exiting the market. This assurance comes amid ongoing debates about the impact of recent legislative changes on rental supply and landlord participation. For landlords, letting agents and property professionals, understanding these developments is crucial to navigating the evolving regulatory landscape.
Government’s Position on PRS Stability
In a written parliamentary response dated June 2026, Housing Minister Matthew Pennycook stated that the size of the private rented sector has not experienced significant change since the Renters’ Rights Act came into force. According to data from the English Housing Survey 2024-2025, approximately 19% of households in England continue to rent privately, indicating a stable market share.
The minister also noted that the government has not yet conducted a specific assessment on how the abolition of Section 21 ‘no fault’ evictions, effective from 1 May 2026, has affected rental supply. However, official possession statistics from the Ministry of Justice for the first quarter of 2026 show a 12% reduction in accelerated possession claims compared to the previous year, suggesting some shift in landlord possession activity.
Monitoring and Evaluation of the Renters’ Rights Act
The government has launched a dedicated data initiative to monitor the effects of the Renters’ Rights Act on the PRS. This includes tracking trends in landlord behaviour, tenancy agreements and rental availability. The Department for Levelling Up, Housing and Communities has committed to publishing evaluation reports at two and five years post-implementation to provide a comprehensive analysis of the Act’s impact.
This ongoing monitoring aims to inform future policy decisions and ensure that the sector remains balanced between protecting tenant rights and maintaining a viable rental market. For landlords and agents, staying informed about these evaluations will be important for anticipating regulatory changes and adapting business practices accordingly.
Contrasting Research on Landlord Exits
Despite official assurances, independent research presents a more cautious outlook. A study by Pepper Money estimates that around 220,000 households could leave the private rented sector in England by the end of 2026. Of these, over 65,000 exits are directly linked to the introduction of the Renters’ Rights Act.
Further research from property consultancy Allsop highlights that approximately 40% of landlords surveyed are unlikely to continue letting properties following the Act’s implementation. This figure rises to 51% among landlords with a single property, reflecting concerns about the new regulatory environment and the removal of Section 21 eviction rights.
Implications for Rental Supply and Market Dynamics
The potential reduction in landlord participation could have implications for rental availability and affordability. A contraction in the number of rental properties may increase competition among tenants and place upward pressure on rents. However, the government’s position suggests that these effects have not yet materialised significantly at a sector-wide level.
Letting agents and property managers may observe shifts in landlord sentiment and tenant demand, requiring adjustments in portfolio management and client advice. It remains important to monitor local market conditions and regulatory updates to manage risks associated with tenancy agreements and possession proceedings.
What this means for landlords
Landlords should be aware that while the government currently views the private rented sector as stable, independent research indicates some landlords are reconsidering their involvement due to the Renters’ Rights Act. This divergence underscores the importance of carefully assessing the financial and operational impacts of recent legislative changes on individual rental portfolios.
Compliance with the new tenancy protections and possession restrictions will be essential to avoid enforcement issues. Landlords may need to review tenancy agreements, update procedures for rent collection and dispute resolution, and seek professional advice where necessary. Keeping abreast of ongoing government evaluations and market trends will help landlords make informed decisions about their rental properties.
What TLA members should consider
- Review tenancy agreements to ensure compliance with the Renters’ Rights Act and the abolition of Section 21 notices.
- Monitor official government updates and evaluation reports on the PRS to understand emerging trends and regulatory changes.
- Engage with letting agents and property managers to discuss potential impacts on rental supply and tenant demand in your area.
- Consider the financial implications of holding or exiting rental properties in light of evolving landlord obligations and market conditions.
- Access TLA resources and training to stay informed about best practices for managing tenancies under the new legal framework.
- Seek professional advice from legal or compliance experts if uncertain about rights, responsibilities or enforcement risks under the Renters’ Rights Act.
TLA Training Academy
The Landlord Association provides structured guidance, compliance education and practical support for landlords, letting agents and property professionals. Members can access training and resources designed to help them stay organised, informed and prepared.
Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/
Those looking to join and access member support can register here: https://landlordassociation.org.uk/get-started-with-the-landlord-association/
TLA update
The Landlord Association is continuing to expand its support, resources and partner network for landlords, tenants, agents and property professionals across the UK. Service providers interested in working with TLA can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/
Source: www.property118.com
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