## Reform UK Targets the Renters’ Rights Act Amid Market Concerns

Reform UK has committed to scrapping the Renters’ Rights Act, citing its adverse effects on the private rented sector. Deputy leader Richard Tice described the legislation as well-intentioned but ultimately counterproductive, with landlords increasingly exiting the market. This shift threatens to reduce rental supply and push rents higher, as the balance between risk and reward for landlords becomes unsustainable.

The Act’s restrictions, including the removal of Section 21 eviction notices and extended notice periods, have prompted landlords to reassess their involvement. Many are responding by tightening tenant criteria or leaving the sector altogether, which diminishes available homes and limits tenant choice.

## Impact on Landlords and Tenants: Compliance Costs and Selection Criteria

Landlords face rising compliance costs and increased risks under the Act, which they often offset by raising rents or demanding guarantors. Reports indicate a surge in rent guarantee insurance purchases, reflecting landlords’ efforts to mitigate financial exposure. Tenants who previously benefited from flexible arrangements may now encounter more stringent screening and fewer opportunities.

Section 21, often criticised by campaigners, historically provided landlords with a backstop to manage borderline tenant cases. Its removal risks lengthy tribunal processes and lost income, further discouraging landlords from offering flexible tenancies. Meanwhile, rogue landlords—the supposed targets of the legislation—are unlikely to comply, as enforcement remains limited.

## Tenant Perspectives and Campaign Group Responses

Tenant advocacy groups have expressed concern that repealing the Act would reduce renters’ security. However, evidence suggests most tenants are currently satisfied with their housing situations. Critics may underestimate the impact of shrinking rental stock, as rights on paper mean little without available properties.

Generation Rent labelled Reform UK’s position as a gift to unscrupulous operators, though these landlords have historically ignored existing regulations. This highlights the complexity of balancing tenant protections with maintaining a viable rental market.

## John Lewis’s Withdrawal Highlights Market Realities

The recent decision by John Lewis to close its housebuilding division and exit property management illustrates the financial pressures in the sector. Plans for 1,000 homes across three sites were abandoned due to rising borrowing and construction costs since 2020. This retreat questions the government’s ambitious target of building 1.5 million new homes, signalling challenges for private landlords already managing regulatory burdens such as EPC upgrades, selective licensing, and tax changes.

## Policy Challenges: Balancing Standards with Supply

Government policies increasing landlord responsibilities and risks without addressing enforcement capacity risk shrinking the rental market. Tribunals are unlikely to become faster, and council enforcement budgets remain limited. Consequently, landlords may respond by raising rents, tightening tenant selection, or exiting the sector, all of which reduce supply and increase costs for renters.

Richard Tice’s call for balance underscores the need to uphold decent housing standards without emptying the sector. The coming months will reveal whether tenants feel the effects of reduced supply or if landlords have already quietly withdrawn. Reform UK’s acknowledgment of these issues contrasts with other parties’ optimism that the market can absorb ongoing pressures without consequence.

## What This Means for UK Landlords

Landlords should prepare for continued uncertainty in the regulatory environment and potential shifts in tenant demand. The possibility of repealing the Renters’ Rights Act may bring changes to eviction processes and compliance requirements. Meanwhile, rising costs and enforcement challenges suggest landlords must carefully assess risk and tenant screening practices to maintain sustainable portfolios.

Suggested internal link anchors
– Renters’ Rights Act repeal
– Section 21 eviction notice
– Rent guarantee insurance
– EPC upgrades
– Selective licensing
– Private rented sector supply
– Tenant screening criteria
– Housing policy impacts
– Tribunal delays
– Landlord compliance costs
– Rental market challenges
– Housing construction costs

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/