Renters’ Rights Act impact assessed six months after implementation

Renters’ Rights Act impact assessed six months after implementation

The Renters’ Rights Act came into force on 1 May 2026, introducing major changes to tenancy law in England. Six months on, landlords and agents report mixed effects on possession, rent setting, and tenant behaviour.

The Renters’ Rights Act (RRA) introduced a fundamental overhaul of tenancy law in England, notably abolishing section 21 ‘no fault’ evictions and fixed-term tenancies. This has altered how landlords regain possession and manage rent increases. The Act also banned bidding wars for new tenancies and introduced new tenant protections. Six months after the Act’s commencement on 1 May 2026, the sector is beginning to gauge its real-world impact.

Early landlord responses and market trends

Initial fears that the RRA would trigger a mass landlord exodus have not fully materialised. While some landlords have sold properties, many of these sales align with pre-existing investment plans, such as retirements. According to data from Pegasus Insights, 22% of landlords sold rental properties in the 12 months to June 2026, below the 38% who had previously indicated an intention to sell. Looking forward, about 9% of landlords say they plan to exit the market, but this may settle closer to 5-6%.

Despite reduced landlord purchases, strong tenant demand and competitive yields are sustaining investment activity. The sector appears to be adapting to the new legal framework rather than contracting sharply. As the RRA provisions become more established, investment levels may recover further.

Zoopla data for the year to June 2026 shows average rental growth of 2.1%, slightly below the 2.6% inflation rate. However, three-quarters of rental areas experienced rental increases exceeding inflation, with some affordable regions seeing rises above 5%. This suggests landlords’ rental returns are generally holding up well amid the new rules.

Tenant affordability and rent setting under the new regime

While headline rental growth data indicates rising rents, the reality for many tenants is more nuanced. Landlords with reliable tenants often agree to rents below advertised rates to reduce void periods and secure quality occupants. Average earnings growth of 4% outpaces rental inflation, improving affordability for tenants overall. This marks the third consecutive year earnings have risen faster than rents, a trend Zoopla expects to continue with rental inflation forecast between 2% and 3% for the remainder of 2026.

However, certain tenant groups face challenges. International students, for example, previously mitigated referencing issues by paying several months’ rent upfront. With the removal of section 21, landlords are more cautious about risk, making it harder for such tenants to secure accommodation. Guarantors remain a viable solution to overcome referencing hurdles, a practice long established for students and others with limited credit history.

Practical challenges in tenancy transitions and pet permissions

The extension of tenant notice periods from one to two months has increased the risk of rent overlap when moving between properties. Previously, overlaps were typically one to two weeks; now they can extend to five or six weeks, imposing a significant financial burden on tenants. Landlords and agents report that clear communication and proactive tenant management often enable earlier release from rent obligations, mitigating overlap costs.

The RRA’s pet-friendly provisions have encouraged about half of tenants to have or plan to acquire pets. However, many tenants misunderstand the rules, mistakenly believing pets are automatically permitted. In reality, tenants must seek written landlord permission, and landlords can refuse on valid grounds. Rightmove data shows pet-friendly property searches have halved since the Act’s introduction, while 93% of landlords report no tenant pet requests yet. This discrepancy highlights the need for thorough tenant vetting and clear tenancy agreements covering pet policies.

Sector outlook and ongoing adjustments

Although the RRA has introduced significant legal changes, the sector has not experienced the severe disruption predicted by some commentators. Like any major reform, a transition period is underway as landlords, agents and tenants adjust to the new rules. Market behaviours are evolving, with landlords adopting new approaches to tenant selection, rent negotiation and property management.

Looking ahead, it is likely that the initial uncertainty will diminish as the practical implications of the RRA become clearer. Landlords may become more confident in managing tenancies without section 21, and investment activity may stabilise or grow. However, monitoring legislative developments and official guidance remains essential, as further amendments or clarifications could emerge.

What landlords and agents should consider now

• Review tenancy agreements and notices to ensure compliance with the RRA’s new possession and notice requirements.
• Implement clear policies on pet permissions, requiring written tenant requests and landlord responses.
• Enhance tenant vetting processes, including the use of guarantors where appropriate, to mitigate referencing risks.
• Communicate proactively with tenants about notice periods and potential rent overlaps to ease transitions.
• Monitor rent setting carefully, balancing market conditions with tenant affordability and legal constraints on increases.

Supporting landlords through ongoing regulatory change

The Landlord Association (TLA) offers members practical resources to help manage compliance with the Renters’ Rights Act. Our developing ORBIT platform, currently in BETA testing, is designed to assist landlords and letting agents in organising tenancy documentation, recording communications, and keeping track of regulatory updates. ORBIT’s tools for managing notices, recording tenant requests such as pet permissions, and monitoring rent reviews can support landlords adapting to the new legal framework.

Membership also provides access to expert guidance and compliance materials tailored to the evolving requirements of the private rented sector. Staying informed and organised is vital as the sector settles into the post-RRA environment. Explore TLA membership and ORBIT BETA access to strengthen your property management and compliance capabilities.

The next months will be critical in observing how the market settles and whether further legislative refinements occur. Landlords and agents should maintain vigilance and ensure their practices remain aligned with current law and best practice.

Sources: Landlord Today