The supply of rental homes is already tightening in parts of England as landlords react to the incoming Renters’ Rights Act with some choosing to exit the sector before the biggest reforms take effect, according to regional executives at Propertymark.
The legislation, described as one of the most significant changes to the private rented sector in decades, will abolish Section 21 no-fault evictions, end fixed-term tenancies from May 2026, restrict rent increases to once a year and ban bidding wars above the advertised rent.
Further measures, including a new Ombudsman and a national landlord database, are due to follow in 2027.
Although many of the changes are not yet fully in force, agents on the ground say behaviour is already shifting among both landlords and tenants.
CHANGING BEHAVIOUR
Megan Eighteen, ARLA Propertymark President and a London-based letting agent, says: “The Renters’ Rights Act is clearly changing behaviour in our local market.
“We’ve seen a surprising increase in landlords exploring a sale, often driven by uncertainty around the new regulations. Interestingly, at the same time, more tenants are becoming highly focused on their rights, asking informed questions and actively engaging with what the Act means for them.
“It’s creating a shift in conversations on both sides of the tenancy.”
PROFITABILITY CONCERNS
Concerns about profitability are also emerging, particularly among smaller landlords, according to Josh Jones, a Regional Executive in the West Midlands.
“The Renters’ Rights Act has led many landlords with smaller portfolios to reassess the viability and profitability of holding rental property due to increased regulation and higher compliance costs, making them question whether their returns justify their continued investment in the private rental sector.”
And he adds: “This has reduced the supply of available homes at a time when tenant demand remains strong, resulting in increased competition and upward pressure on rents. Larger and more professional landlords are adapting, but overall, the local market has tightened rather than expanded.”
PET LIFE
In rural markets, different concerns are emerging.
Pauline Carrera-Silva, a Regional Executive covering Lancashire and Cumbria, says: “As we have a lot of agriculture tenancies, concerns have been raised about tenants being able to keep pets, especially on residential tenancies that are located on a working farm.
“As much as farmers love their animals, there is a world of difference between a well-trained working farm dog and a family pet.”
COMPLIANCE MATTERS
Not all agents see the reforms as disruptive. Jacqui Courtier, covering Devon and Somerset, says the changes should not alarm compliant landlords.
“The Act is not a dramatic shift and more od a move towards greater consistency across the sector.”
She adds: “The legislation should not be viewed as something to fear for landlords who are already doing the right thing.”
LANDLORD EXIT
However, evidence of landlords exiting the sector is already appearing in some areas. Jasmyne Devereaux, a regional executive in Essex, said:
“In the month of January, in one of my offices, out of the scheduled tenancies ending, 33.33 per cent of those are being sold. The remaining percentage is being relet.
“The sales market remains strong here in Essex, which is giving those landlords wanting to sell an easy decision to make.”
With tenant demand still high across much of the country, agents warn that if the current trend continues, the Renters’ Rights Act could unintentionally reduce supply at the same time as it strengthens tenant protections.
