BLOGS

Introduction: a watershed moment for private renting

The Renters' Rights Act 2025, which received Royal Assent in October 2025, represents the most significant reform to England's private rented sector in a generation. From 1 May 2026, Section 21 "no-fault" evictions will be abolished, fixed-term tenancies will convert to periodic agreements, and landlords will face new compliance obligations ranging from mandatory database registration to stricter property standards.

For approximately 11 million private renters living in 4.7 million homes across England, the legislation promises greater security and recourse. But the English Housing Survey baseline reveals a sector with persistent problems—and raises questions about whether reform alone can address them without shrinking the supply of available homes.

Which renters are still struggling most?

The latest English Housing Survey paints a stark picture of conditions in the private rented sector. Some 77% of renters report at least one issue with their current property, with damp or mould the most commonly cited problem at 44%. This compares unfavourably with other tenures: damp affects 10% of private rented dwellings versus just 4% of owner-occupied homes.

Satisfaction levels reflect these conditions. While 81% of private renters report being satisfied with their accommodation, this trails the 94% satisfaction rate among owner-occupiers. Critically, when renters do complain, outcomes disappoint: 50% of those who made a complaint were unhappy with the response, with repair times and damp issues generating the lowest satisfaction scores.

REalyse data highlights the affordability pressures compounding these quality concerns. Across UK regions, the average proportion of household income spent on rent sits around 33%, but this masks significant variation. London renters face the most acute pressure, with some neighbourhoods showing rent-to-income ratios exceeding 60%. Central London postcodes see private renting rates of 35-41% of households—well above the national average of 19%.

The groups facing the greatest strain remain those the Act specifically targets: families with children and benefit recipients who have historically faced discrimination in tenant selection. Research shows similar proportions of renters continue to report being refused tenancies on these grounds, underscoring why the Act's anti-discrimination provisions were deemed necessary.

What the Renters' Rights Act changes

The Act introduces several headline reforms designed to rebalance the landlord-tenant relationship:

Security of tenure: All assured shorthold tenancies will convert to periodic agreements. Tenants gain the right to leave with two months' notice, while landlords must use Section 8 grounds—such as rent arrears, antisocial behaviour, or genuine intention to sell—to recover possession.

Property standards: The Decent Homes Standard will extend to private rentals for the first time. Awaab's Law, requiring landlords to address dangerous damp and mould within set timeframes, will apply from October 2025 for social housing and subsequently to private landlords.

Transparency and accountability: A mandatory Private Rented Sector Database will require all landlords and properties to be registered. A new Private Rented Sector Ombudsman will provide dispute resolution outside the court system.

Rent and access reforms: Rent increases will be limited to once annually via Section 13 notices, with tenants able to challenge excessive rises at tribunal. Rental bidding above advertised prices is prohibited, and advance payments are capped at one month's rent. Tenants gain the right to request pets, with landlords required to consider requests reasonably.

These provisions aim squarely at the problems identified in the English Housing Survey—insecurity, poor conditions, and unfair practices. Whether they succeed depends heavily on enforcement capacity and landlord response.

Landlord uncertainty and the supply question

The Act arrives at a moment of significant landlord anxiety. Cumulative regulatory pressure—Section 24 tax changes, Minimum Energy Efficiency Standards requirements, and now the Renters' Rights Act—has left many questioning the viability of buy-to-let investment.

Survey evidence suggests widespread underestimation of the Act's implications. Some 27% of self-managing landlords believe the reforms won't significantly impact their lettings, while 25% admit knowing too little about the bill to assess its effect. This knowledge gap creates risk: the overnight switch to periodic tenancies and new Section 13 rent procedures will require immediate compliance.

More concerning for supply is the exit pressure on smaller landlords. Market indicators point to shifts already underway, with some landlords choosing to sell rather than adapt. Properties sold by exiting landlords are increasingly acquired by portfolio operators or institutional investors with the scale and expertise to manage compliance costs.

REalyse data shows the landlord landscape remains fragmented, with business and corporate ownership accounting for a minority of residential land parcels. However, this share is likely to grow as the professionalisation of the sector accelerates. Areas with strong institutional build-to-rent pipelines—London, Manchester, Birmingham, Leeds—may see smoother transitions, while markets dominated by individual landlords could face supply constraints.

The court system presents another bottleneck. Ministry of Justice data shows the average time from possession claim to recovery currently exceeds seven months—far longer than government estimates suggest. With Section 21 abolished, all possession cases will flow through Section 8 grounds, potentially straining an already stretched system. The National Residential Landlords Association has called for a credible, funded plan for court reform as a prerequisite for successful implementation.

Regional variation and market outlook

The reform's impact will not be uniform across the UK. Scotland already operates under distinct private rented sector rules including open-ended tenancies and recent temporary rent controls. Wales has introduced similar reforms through the Renting Homes (Wales) Act. Northern Ireland retains its own regulatory structure.

Within England, regional affordability data reveals divergent pressures. REalyse analysis shows rent-to-income ratios varying from around 23% in the most affordable areas to over 60% in parts of London. Coastal and university towns with high concentrations of private renting—Blackpool, Brighton, Cambridge—will experience reforms differently than areas where homeownership dominates.

For investors and lenders, understanding landlord compliance capacity becomes increasingly material. A landlord's ability to navigate Section 8 proceedings, maintain Decent Homes compliance, and engage constructively with the Ombudsman will directly affect asset performance and risk profiles.

The build-to-rent sector stands to gain relative advantage. Purpose-built rental developments typically operate with professional management, institutional-grade compliance systems, and economies of scale that absorb regulatory costs more easily than fragmented individual landlords.

Conclusion: protecting tenants without shrinking supply

The Renters' Rights Act addresses genuine problems. When 77% of private renters report property issues, and 44% face damp or mould, reform is overdue. The abolition of no-fault evictions removes a source of insecurity that has left tenants vulnerable to retaliation for legitimate complaints.

Yet the reforms arrive alongside persistent affordability pressures and landlord uncertainty that could reduce supply precisely when demand remains strong. The Act's success will ultimately depend on enforcement funding, court reform, and whether landlord exits are offset by professional and institutional investment.

For renters, the baseline has shifted. For landlords, adaptation—or exit—awaits. The next twelve months will reveal whether the UK's largest housing tenure can deliver improved outcomes without losing the homes renters need.