The Renters’ Rights Act and Its Impact on Corporate Landlords

The Renters’ Rights Act, set to commence on 1 May 2026, introduces significant changes aimed at professionalising the private rented sector (PRS). While individual landlords have expressed concerns about increased regulation, corporate landlords, particularly those in the Build to Rent (BTR) sector, stand to benefit from the new legislation. This article explores the implications of the Act for UK landlords and the broader rental market.

Background to the Renters’ Rights Act

The Renters’ Rights Act has been under consideration for several years, initially proposed during Theresa May’s tenure as Prime Minister. It represents a government effort to enhance tenant protections and raise standards within the PRS. The Act forms part of a wider strategy to professionalise the sector, encouraging institutional investment in purpose-built rental housing.

Historically, the PRS has been dominated by individual landlords, many owning just one or two properties. While this has contributed to a diverse rental market, it has also led to inconsistencies in property management and regulatory compliance. The government’s intention with the Act is to address these issues by setting higher standards across the board.

Opportunities for Corporate Landlords and Build to Rent

Corporate landlords, especially those operating in the BTR sector, are generally well-positioned to meet the Act’s requirements. BTR schemes are professionally managed and typically incorporate advanced property technology to improve operational efficiency. They also tend to prioritise energy efficiency and long-term tenant satisfaction, aligning with the Act’s objectives.

For landlords and investors, a more professional rental sector offers a stable and predictable market environment. With homeownership increasingly unaffordable for many, demand for quality rental accommodation is expected to grow. BTR developments, which have expanded from around 3,500 homes a decade ago to over 100,000 by 2024, with an additional 54,000 units under construction, are well placed to meet this demand.

The growing interest from pension funds, insurers, and international investors further underscores the sector’s potential. Despite this growth, BTR still represents a relatively small portion of the overall PRS, indicating significant room for expansion and private investment alongside corporate involvement.

Challenges and the Need for Supportive Policies

To fully realise the potential of BTR, supportive policies are essential. This includes reforms in planning, management, and government recognition of BTR’s role in addressing the housing crisis. Recent observations from property industry events suggest that while politicians express enthusiasm for BTR, there remains a lack of detailed understanding of the sector’s benefits and challenges.

The Renters’ Rights Act alone will not suffice to professionalise the sector. BTR must be integrated into both national and local housing strategies. Unlike social housing or build-to-sell developments, BTR currently lacks tailored policies to support its growth. For policymakers committed to resolving the housing shortage, recognising and encouraging BTR is crucial.

Incentives to Accelerate Build to Rent Development

Government incentives could play a pivotal role in expanding BTR. Planning reform, tax reliefs, and improved access to funding would help accelerate development and attract further investment. Simplifying the planning process for BTR schemes, in particular, could enable developers to bring projects to market more swiftly, contributing to housing supply targets.

Local authorities are also encouraged to collaborate more closely with BTR developers to integrate rental housing into local plans. This is especially important in urban areas where affordability is a pressing issue and demand for high-quality rental accommodation is strong.

Conclusion

The Renters’ Rights Act represents a positive step towards a more professional and structured private rented sector. For corporate landlords and BTR developers already operating to high standards, the legislation reinforces their position and supports long-term investment prospects.

However, to meet ambitious housing targets, further reforms—particularly in planning—are necessary to unlock the full potential of the BTR sector. A coordinated approach involving government, local authorities, and industry stakeholders will be key to delivering quality rental homes at scale.

Additional Information for Landlords

Landlords and property managers should note that TLA is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest here.

Andy Jones is Group Director of Corporate Sales, Lettings & BTR at LRG and a member of the Association of Leasehold Enfranchisement Practitioners (ALEP).