Tenant confusion over Renters’ Rights risks market shift

Only a minority of renters understand the incoming Renters’ Rights Act 2025 with new research suggesting the knowledge gap could influence tenant behaviour and reshape demand across the private rented sector.

Data from Housing Hand shows just 22% of tenants understand how the legislation will affect their rights, down from 25% a year ago. At the same time, 29% of renters say they are unaware of the Act entirely.
Among those who do understand the reforms, one in five say they will choose a different type of property as a result, while a further 27% may reconsider their rental choices.

The findings point to a potential shift in demand as the legislation comes into force, particularly as it removes barriers for tenants with children and pets, and introduces greater flexibility through periodic tenancies.

OPERATIONAL CHALLENGES

Student renters are also expected to see increased choice, no longer tied to fixed-term academic contracts.

The research also highlights operational challenges for landlords, including restrictions on marketing HMOs more than six months in advance, despite a proportion of renters searching and securing homes well ahead of that window.

KNOWLEDGE GAP

Graham Hayward (main picture), Managing Director at Housing Hand, says: “Our second annual Understanding Renters report reveals significant gaps in knowledge in relation to the Renters’ Rights Act.

“With implementation now upon us, accommodation providers will need to work closely with their tenants to support successful rental experiences in this new landscape.

“Housing Hand is working proactively with its accommodation providers, landlords and lettings agents, as well as with our guarantor clients, to ensure this is the case.”

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