Rental stock declines as Renters Rights Act takes effect
The number of rental properties available in the UK fell in the second quarter of 2026, marking the first annual decrease in four years. This shift coincides with the implementation of the Renters Rights Act on 1 May 2026.
Data from Rightmove shows that the total supply of homes to rent is now 1% lower than it was a year ago. The decline is attributed mainly to fewer new rental listings rather than faster lettings. Despite this, the overall balance between supply and demand appears to be stabilising, with tenant competition easing compared to recent peaks.
Rightmove data reveals market changes post-Renters Rights Act
According to Rightmove, the rental market had been experiencing a steady increase in available homes since the post-pandemic low point. However, the second quarter of 2026 saw a reversal, with rental stock dipping below the previous year’s level for the first time in four years. This timing aligns with the Renters Rights Act coming into force on 1 May 2026, suggesting a possible connection between the new legislation and landlords’ decisions to list properties.
The portal highlights that the drop in rental supply is driven more by a reduction in newly listed properties rather than an acceleration in letting speed. Tenant enquiries per property have fallen from 11 a year ago to 10 currently, down from a peak of 22 in 2022. While this indicates less competition among tenants, the current enquiry rate remains double the pre-pandemic average of five enquiries per property.
Regional variations persist, with northern areas such as the North East and North West outperforming in rent growth, both recording annual increases of 4.1%. In contrast, regions like the East Midlands and East of England saw more modest rises around 1.5%. London shows the most balanced market, averaging eight enquiries per property, whereas the North West experiences the highest demand imbalance with 14 enquiries per home.
Contextualising the Renters Rights Act’s impact on landlords
The Renters Rights Act represents a significant reform in tenancy law, introducing new protections for tenants and altering landlords’ operational landscape. Early indications from the Rightmove data suggest that some landlords may be withdrawing properties from the market or delaying new listings in response to the Act’s requirements and potential administrative burdens.
This legislation replaces previous tenancy frameworks with more tenant-friendly rules, including changes to possession procedures and rent regulation. For landlords, these changes mean adapting to new compliance demands, altered notice periods, and potentially more complex dispute resolution processes. The initial reduction in rental stock could reflect landlords reassessing their portfolios or exiting the market due to these factors.
Despite the decrease in supply, the market’s overall supply-demand balance is stabilising, which may ease some pressures on tenants and landlords alike. However, the regional disparities underline that local market conditions remain critical in understanding the Act’s practical effects.
Practical implications for landlords and letting agents
For landlords managing small portfolios or individual properties, the Renters Rights Act introduces a need to review tenancy agreements, possession procedures, and rent setting practices. Ensuring compliance with the new legal framework will be essential to avoid penalties and disputes. Letting agents will also need to update their processes and advice to landlords accordingly.
The decline in newly listed properties suggests that some landlords may be hesitant to enter or expand in the market under the new regime. This could lead to tighter availability in certain areas, particularly where demand remains strong, such as the North West. Landlords should monitor local market conditions closely and consider the financial and administrative impacts of the Act on their rental business.
Rent levels outside London have continued to rise, with an average advertised rent increase of 1.9% in the second quarter, reaching a new record of £1,397 per month. This trend, coupled with reduced rental stock, may influence landlords’ decisions on rent setting and property investment.
Uncertainties and what to watch going forward
While early data points to a reduction in rental stock following the Renters Rights Act’s introduction, it remains unclear whether this trend will persist or if the market will adjust as landlords and agents become more familiar with the new rules. The full impact on landlord behaviour, tenant security, and rental affordability will unfold over the coming months.
Further government guidance and case law developments may clarify some of the Act’s provisions, potentially influencing market dynamics. Landlords should stay informed of regulatory updates and emerging best practices to manage risks effectively.
Considerations for landlords amid changing rental regulations
Landlords should conduct a thorough review of their tenancy documentation and management procedures to ensure alignment with the Renters Rights Act. This includes updating tenancy agreements, understanding new possession rules, and preparing for potential changes in rent review processes.
Engaging with letting agents who are well-versed in the new legislation can help landlords navigate compliance challenges. Monitoring local rental market trends and tenant demand will also be crucial for making informed decisions about portfolio adjustments or rent setting.
Maintaining clear records of communications, inspections, and repairs will support landlords in demonstrating compliance and managing disputes under the new legal framework. Given the evolving nature of the rental market, flexibility and proactive management will be key to sustaining rental income and tenant satisfaction.
Supporting landlords through regulatory change with TLA
The Landlord Association (TLA) offers members access to practical compliance resources and guidance tailored to the Renters Rights Act and its implications. Through TLA’s BETA testing platform ORBIT, landlords and letting agents can organise property records, manage tenancy documents, and keep track of key compliance actions relevant to the new legislation.
ORBIT’s developing features include tools for recording inspections, repairs, and communications, helping landlords maintain evidence of adherence to the Act’s requirements. Membership also provides access to up-to-date information on regulatory developments and expert support to address challenges arising from tenancy law changes.
Exploring TLA membership and ORBIT BETA access can assist landlords in adapting their practices efficiently and confidently as the rental sector adjusts to the Renters Rights Act.
The rental market’s response to the Renters Rights Act will continue to evolve, with landlords needing to balance compliance demands against market opportunities. Staying informed and prepared will be essential as the sector navigates this new regulatory environment.
Sources: Landlord Today
TLA - The Landlord Association