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Tag: Renters’ Rights Act

  • Landlords Exit Market: 27% Plan to Leave Amid Reforms

    Landlords Exit Market: 27% Plan to Leave Amid Reforms

    The UK rental market is facing significant upheaval as a recent survey reveals that over a quarter of landlords intend to exit the sector. This trend is largely attributed to the lack of confidence in the rental market following the implementation of the Renters’ Rights Act reforms in May 2026, which have altered key aspects of landlord-tenant relationships.

    TL;DR: 27% of landlords are planning to leave the rental market, while 36% are reducing their property portfolios; this shift is driven by reforms that have diminished confidence in the sector.

    Why Are Landlords Leaving the Market?

    According to the findings, 27% of landlords are choosing to exit the market entirely, and 36% are scaling back their portfolios. In stark contrast, fewer than 4% are looking to expand their holdings. The research indicates that 78% of landlords lack confidence in the current rental environment, a sentiment that has intensified since the introduction of the Renters’ Rights Act reforms. These reforms, which took effect on May 1, 2026, include the abolition of section 21 no-fault evictions and new regulations aimed at preventing bidding wars over rent.

    Who Is Most Affected by These Changes?

    The impact of these changes is particularly pronounced among smaller landlords. A notable 44% of landlords with a single rental property are planning to exit the market. For those with five or more buy-to-let properties, the trend is also concerning, with 53% opting to reduce their portfolios. This shift raises questions about the future of rental availability and affordability for tenants, as fewer landlords may lead to a tighter rental market.

    What This Means for Landlords and Investors

    The current climate poses challenges for landlords and investors alike. With many landlords exiting the market, those remaining may face less competition, but also the risk of increased regulatory scrutiny and potential changes in tenant demand. Investors should closely monitor these trends, as the evolving market could present both risks and opportunities in the rental sector.

    Frequently asked questions

    What are the key reforms in the Renters’ Rights Act?

    The Renters’ Rights Act introduced significant changes, including the abolition of section 21 no-fault evictions and regulations to prevent bidding wars over rental prices.

    How can landlords adapt to the changing market?

    Landlords may need to reassess their investment strategies, consider diversifying their portfolios, or focus on improving tenant relationships to navigate the new regulatory environment.

  • Landlords Face New Registration Costs Starting December 2026

    Landlords Face New Registration Costs Starting December 2026

    Landlords in the UK are gearing up for a new registration requirement that will begin rolling out regionally in December 2026. This initiative, part of the Renters’ Rights Act, will impose an annual fee of £65 per property, significantly impacting landlords’ operating costs and prompting a need for financial reviews.

    TL;DR: Starting December 15, 2026, landlords must register properties at £65 each annually; this adds substantial costs for those with multiple properties, necessitating financial reviews.

    What is the New Registration Requirement for Landlords?

    The Renters’ Rights Act will introduce a mandatory registration process for landlords, commencing in the West Midlands on December 15, 2026. Following this initial rollout, the requirement will extend across England on a monthly basis, reaching the South West by August 15, 2027. Each property will incur a registration fee of £65, payable every year, which landlords must now factor into their business expenses.

    How Will This Impact Landlords Financially?

    While £65 per property may seem manageable at first glance, the cumulative effect can be significant. For instance, a landlord managing 10 properties will face an additional £650 annually, while those with 20 properties will see their costs rise to £1,300. For landlords with larger portfolios, such as 50 properties, the annual registration bill will amount to £3,250. This new expense underscores the importance of reviewing existing financial arrangements and cost structures.

    What Should Landlords Consider Moving Forward?

    With the impending registration costs, landlords are encouraged to engage in discussions with their financial advisers. This is particularly pertinent as the upcoming Budget may introduce further policy changes affecting the rental market. While the additional £65 per property should not prompt immediate changes to existing arrangements, it does provide a valid reason for landlords to reassess their financial strategies and explore potential savings in other areas.

    What This Means for Landlords

    The introduction of the registration fee adds a new layer of financial responsibility for landlords, especially those with larger portfolios. As they prepare for this change, it is essential for landlords to consult with advisers to ensure they are not only compliant but also optimising their financial arrangements. The conversation about registration can open the door to broader discussions about costs and potential savings, making it a timely opportunity for landlords to review their overall financial health.

    Frequently asked questions

    When does the new registration requirement start?

    The registration requirement for landlords begins on December 15, 2026, starting in the West Midlands and rolling out across England monthly.

    How much will it cost landlords to register their properties?

    Landlords will need to pay £65 per property annually for registration, which can add up significantly for those with multiple properties.

  • Mortgage Market Update: Possession Claims Trends

    Mortgage Market Update: Possession Claims Trends

    The latest data reveals a significant decline in mortgage possession claims, while landlord possession claims have seen an uptick. This shift is important for understanding the current dynamics within the UK mortgage market, impacting borrowers, landlords, and investors.

    TL;DR: Mortgage possession claims dropped by 20% to 5,232, while landlord possession claims rose by 6% to 23,635; this indicates changing pressures on homeowners and landlords in the current market.

    What are the latest trends in mortgage possession claims?

    In the second quarter of 2026, mortgage possession claims fell significantly, decreasing from 6,539 in the same quarter of 2025 to 5,232. This represents a 20% reduction. Additionally, mortgage orders for possession dropped by 17% to 3,651, while warrants issued decreased by 18% to 3,101, and repossessions fell by 14% to 1,008. Despite this decline, the median average time from claim to repossession increased to 49.1 weeks, up from 42.9 weeks in 2025, marking the highest level since the fourth quarter of 2023.

    How are landlord possession claims changing?

    In contrast to mortgage claims, landlord possession claims increased from 22,352 to 23,635, a rise of 6% compared to the same quarter in 2025. Within this category, accelerated claims rose by 16%, and private landlord claims increased by 5%. However, social landlord claims fell by 3%. The overall trend for landlord possession claims has fluctuated since peaking at 25,402 in the third quarter of 2024, with the latest figures showing a slight decline from previous highs, now standing at 23,635.

    What does this mean for landlords and borrowers?

    For landlords, the increase in possession claims, particularly in London, indicates a growing pressure on rental properties and tenants. London courts accounted for a significant portion of landlord claims, with 7,793 claims and 5,440 orders, representing 33% and 31% of the totals, respectively. The Renters’ Rights Act (RRA), which came into force on 1 May 2026, may also be influencing these trends, as it impacts the rights and responsibilities of both landlords and tenants.

    For borrowers, the decline in mortgage possession claims suggests a stabilising effect in the mortgage market, potentially easing concerns for homeowners facing financial difficulties. However, the increase in the median time from claim to repossession may indicate that while claims are down, the process remains lengthy and complex for those at risk of losing their homes.

    What should investors watch in the mortgage market?

    Investors should closely monitor these trends as they reflect broader economic conditions and housing market dynamics. The reduction in mortgage possession claims could signal a more stable environment for homeowners, potentially leading to increased confidence in the housing market. Conversely, the rise in landlord possession claims may indicate challenges within the rental sector, especially in urban areas like London. Keeping an eye on legislative changes, such as the RRA, will also be essential for understanding future market movements.

    Frequently asked questions

    What factors are contributing to the decline in mortgage possession claims?

    The decline in mortgage possession claims can be attributed to various factors, including improved economic conditions, government support measures, and a more cautious lending environment that has helped borrowers manage their repayments better.

    How does the Renters’ Rights Act affect landlords?

    The Renters’ Rights Act, effective from May 2026, enhances tenant protections, which may lead to increased landlord possession claims as landlords navigate the new regulations while managing their rental properties.

  • Vacant Ex-Rental Homes and the Mortgage Market Impact

    Vacant Ex-Rental Homes and the Mortgage Market Impact

    The recent slowdown in landlords selling rental properties could lead to a significant number of homes remaining vacant, with estimates suggesting up to 100,000 ex-rental homes may not return to the rental market. This situation arises from the Renters’ Rights Act, which imposes restrictions on landlords looking to sell, thereby affecting the overall dynamics of the mortgage market.

    TL;DR: Up to 100,000 unsold rental properties may remain vacant due to new regulations; landlords face a 12-month ban on re-letting after serving a notice to sell.

    What is the Renters’ Rights Act?

    The Renters’ Rights Act, which took effect in May 2026, introduces a mandatory 12-month ban on re-letting for landlords who serve a Ground 1A notice to sell. This means that even if a sale does not go through, landlords cannot rent out their properties for a full year. This legislation aims to protect tenants but has significant implications for landlords and the broader housing market.

    How Many Homes Could Be Affected by the Mortgage Market Changes?

    Research by Hamptons indicates that the share of homes listed for sale that were previously rented has decreased, dropping to 9.2% in June 2026 from 11.3% the previous year. This decline suggests that while landlords are selling less frequently, the new regulations could prevent a substantial number of these homes from returning to the rental market. Estimates indicate that between 80,000 and 100,000 homes could remain vacant if landlords are unable to sell their properties.

    What Does This Mean for Landlords in the Mortgage Market?

    For landlords, the implications are significant. The combination of a tougher sales market and the new re-letting ban complicates the selling process. Many landlords may be discouraged from selling due to the risk of not being able to rent their properties for an extended period. This could lead to a decrease in the number of rental properties available, potentially driving up rental prices. Average rents for newly-let homes rose by 1.6% year-on-year in June, indicating a tightening rental market.

    What Should Investors Watch Next in the Mortgage Market?

    Investors and landlords should monitor the evolving rental market closely. The introduction of the Renters’ Rights Act could lead to a significant shift in property investment strategies. With the potential for increased vacancy rates and rising rents, understanding market dynamics will be important. Additionally, those looking to enter the market should consider current mortgage rates and the implications of these new regulations on their investment decisions. For the latest rates, check our current mortgage rates.

    Frequently asked questions

    How does the Renters’ Rights Act affect landlords?

    The Renters’ Rights Act imposes a 12-month ban on re-letting for landlords who serve a notice to sell, potentially leading to increased vacancies and complicating sales.

    What impact could vacant homes have on the rental market?

    With up to 100,000 ex-rental homes potentially remaining vacant, the rental market may face tighter supply, leading to increased rental prices for existing properties.

  • Vacant Ex-Rental Homes: Impact on the Mortgage Market

    Vacant Ex-Rental Homes: Impact on the Mortgage Market

    The recent slowdown in the sale of rental properties is raising concerns in the UK mortgage market. New research indicates that up to 100,000 ex-rental homes could remain vacant due to the Renters’ Rights Act, which may prevent landlords from re-letting properties that they attempt to sell.

    TL;DR: The Renters’ Rights Act could leave 100,000 unsold rental homes vacant; landlords face a 12-month re-letting ban if they serve a notice to sell.

    What is the Renters’ Rights Act?

    Enacted in May 2026, the Renters’ Rights Act introduces significant changes for landlords looking to sell their properties. If a landlord serves a Ground 1A notice to sell, they are subject to a mandatory 12-month ban on re-letting the property, even if the sale does not go through. This legislation aims to protect tenants but poses challenges for landlords who may struggle to sell their properties in a fluctuating market.

    How is the mortgage market responding to these changes?

    According to analysis from Hamptons, the proportion of homes listed for sale that were previously rented dropped to 9.2% in June 2026, down from 11.3% the previous year. This decline indicates that while some landlords are opting to sell, the overall pace has slowed. Notably, June marked a turning point where landlord purchases exceeded sales for the first time since 2019, suggesting a shift in market dynamics.

    What does this mean for landlords?

    For landlords, the implications of the Renters’ Rights Act are significant. The potential for up to 100,000 homes to remain unsold and vacant could exacerbate the housing supply crisis. The ban on re-letting properties could deter landlords from selling, as they face the risk of being unable to generate rental income during the waiting period. Moreover, the market is already experiencing challenges due to higher mortgage costs and tax changes that have gradually reduced the number of active landlords.

    What should investors and brokers watch for in the mortgage market?

    Investors and mortgage brokers should closely monitor the evolving rental market. With average rents for newly-let homes rising by 1.6% year-on-year to £1,392 in June, there may be opportunities for those willing to navigate the complexities introduced by the Renters’ Rights Act. Brokers should also keep an eye on the types of properties being marketed for sale, as flats, which made up 51% of rental homes listed last year, are particularly affected by these changes. For current mortgage rates, landlords should consider consulting current mortgage rates to make informed decisions.

    Frequently asked questions

    How will the Renters’ Rights Act affect rental property investments?

    The Renters’ Rights Act may discourage landlords from selling properties, leading to a potential increase in vacant homes and affecting rental supply. Investors should consider these dynamics when assessing property investments.

    What trends should landlords watch in the mortgage market?

    Landlords should monitor changes in mortgage rates and regulations, as these factors can significantly impact their financial decisions. Keeping abreast of rental market trends will also be important for making informed investment choices.

  • Latest Updates in the UK Mortgage Market: Key Changes

    Latest Updates in the UK Mortgage Market: Key Changes

    Recent developments in the UK mortgage market reveal significant changes that could affect both borrowers and landlords. Santander has announced reductions in mortgage rates across its range, while the Renters’ Rights Act has led to a notable spike in evictions. These shifts highlight the evolving market of mortgage products and rental regulations.

    TL;DR: Santander is cutting rates on most mortgage products, impacting new and existing customers; meanwhile, nearly 20,000 tenants faced eviction before the Renters’ Rights Act took effect.

    How is Santander changing its mortgage offerings?

    Starting from June 18, Santander will reduce rates on a wide array of mortgage products, including fixed and tracker options for both residential and buy-to-let customers. While many products will see lower rates, first-time buyer options at 85% loan-to-value (LTV) will experience rate increases. Additionally, Santander is reintroducing home mover products, lowering product fees, and extending key application and completion deadlines by one month. This move aims to enhance affordability and accessibility for borrowers.

    What does the latest Rightmove report say about house prices?

    According to Rightmove, the average asking price for newly listed homes has dropped by 0.6% in June, now standing at £376,191. This marks the largest decline for June in 14 years, as sellers adjust to the competitive market and increasingly price-sensitive buyers. This trend may signal a shift in market dynamics, potentially affecting both buyers and sellers in their decision-making processes.

    What impact is the Renters’ Rights Act having on evictions?

    Research from COHO indicates that nearly 20,000 tenants were evicted in the month preceding the implementation of the Renters’ Rights Act, with one in four tenants receiving eviction notices ahead of the ban on Section 21 “no-fault” evictions. This suggests that landlords may be taking preemptive measures to mitigate risks associated with potential changes in eviction laws, leading to a spike in evictions. As landlords adapt to the new regulations, they may become more cautious in managing their rental properties.

    What this means for the mortgage market and borrowers

    The recent changes in the mortgage market and rental regulations have significant implications for landlords and borrowers alike. For landlords, the acceleration of evictions prior to the Renters’ Rights Act may indicate a shift in how rental properties are managed, with a heightened focus on risk management. Borrowers, particularly first-time buyers, may find opportunities in Santander’s reduced rates, although they should be mindful of the rate hikes on certain products. Overall, these developments signal a need for both groups to stay informed and adaptable in a changing market.

    Frequently asked questions

    What should borrowers consider with the new Santander rates?

    Borrowers should evaluate the new lower rates offered by Santander, particularly if they are looking for fixed or tracker options. However, first-time buyers should be cautious of the rate increases on specific products and assess their overall mortgage strategy accordingly.

    How will the Renters’ Rights Act affect future evictions?

    The Renters’ Rights Act aims to provide greater security for tenants by banning no-fault evictions. This may lead to fewer evictions in the long term, but landlords may respond by tightening their rental criteria or increasing rents to mitigate potential risks.

  • Impact of Renters’ Rights Act on the Mortgage Market

    Impact of Renters’ Rights Act on the Mortgage Market

    The recent Renters’ Rights Act is poised to significantly affect the UK mortgage market, particularly for tenants with financial vulnerabilities. As landlords adapt to the new regulations, those with poor credit histories or inconsistent incomes may face increased challenges in securing rental properties.

    TL;DR: 78% of landlords may become more selective in tenant choices due to the Renters’ Rights Act; this could particularly disadvantage renters with poor credit or unstable incomes.

    How Will the Renters’ Rights Act Affect Tenants?

    The Renters’ Rights Act introduces measures that could lead to stricter criteria for tenant selection. Landlords are expressing heightened caution, with 78% indicating they will likely be more selective when choosing tenants. This shift is especially concerning for individuals with poor credit histories, fluctuating incomes, or those lacking guarantors, as they may find it increasingly difficult to secure housing.

    What Concerns Do Landlords Have?

    Landlords are voicing significant concerns regarding the implications of the Renters’ Rights Act. A notable 90% of landlords are worried about court backlogs that could delay the repossession of properties when necessary. This uncertainty may lead landlords to adopt a more cautious approach in their rental practices, further tightening the availability of rental properties for those on the financial margins.

    What This Means for the Mortgage Market

    The tightening of rental criteria could have broader implications for the mortgage market. As landlords become more selective, the demand for rental properties may shift, affecting rental prices and potentially leading to an increase in buy-to-let mortgage applications as landlords seek to secure their investments. Borrowers looking to enter the market may find it essential to improve their financial profiles to meet the heightened expectations from landlords.

    What Should Renters and Landlords Watch Next?

    Both renters and landlords should stay informed about the evolving market following the Renters’ Rights Act. Renters should consider enhancing their creditworthiness and exploring options for securing guarantors to improve their chances in a competitive rental market. Landlords, on the other hand, should prepare for potential changes in demand and consider the impact of court delays on their rental strategies.

    Frequently Asked Questions

    How can renters improve their chances of securing a rental property?

    Renters can enhance their chances by improving their credit scores, maintaining stable income, and securing a guarantor if possible. These factors can make them more appealing to landlords.

    What should landlords do in response to the Renters’ Rights Act?

    Landlords should review their tenant selection processes and consider strategies to mitigate risks associated with potential court backlogs. Staying informed about legal changes will also help them navigate the new market effectively.

  • Landlords Face £7,000 Fines for Missing Document Deadline

    Landlords Face £7,000 Fines for Missing Document Deadline

    Landlords in the UK are facing fines of up to £7,000 if they fail to deliver a important document to their tenants by the end of this week. By 31 May, landlords must provide existing tenants with the government’s new information sheet detailing the implications of the Renters’ Rights Act on their tenancy agreements.

    TL;DR: Landlords must send a new information sheet to tenants by 31 May to avoid fines up to £7,000; this document outlines significant changes to tenant rights, including the end of Section 21 evictions.

    What is the Renters’ Rights Act?

    The Renters’ Rights Act, which came into effect on 1 May, introduces significant changes to the rights of tenants in the UK. One of the most notable changes is the abolition of Section 21 ‘no fault’ evictions, meaning landlords can no longer evict tenants without a valid reason. Additionally, the Act prohibits landlords from discriminating against tenants based on factors such as having children or receiving benefits.

    Who Needs to Comply with the New Rules?

    All landlords with existing tenants are required to comply with the new regulations. This includes those renting out residential properties, whether they are private landlords or part of larger property management companies. The deadline for sending the information sheet is 31 May, and failure to do so could result in substantial penalties.

    What Happens If Landlords Fail to Meet the Deadline?

    Landlords who do not provide the required information sheet by the deadline may face fines ranging from £7,000 to £40,000, depending on the severity of the violation. This financial penalty underscores the importance of compliance with the new legislation, as landlords could face serious financial repercussions for non-compliance.

    What This Means for Landlords

    For landlords, the introduction of the Renters’ Rights Act marks a significant shift in the rental market. It is important for landlords to understand the new obligations and ensure they provide the necessary documentation to their tenants. Not only does this help avoid hefty fines, but it also promotes transparency and a better relationship with tenants. Landlords should review their tenancy agreements and ensure they are aligned with the new regulations to mitigate risks associated with potential legal challenges.

    Frequently asked questions

    What is the deadline for landlords to send the new document?

    Landlords must send the new information sheet to their existing tenants by 31 May.

    What are the penalties for non-compliance?

    Landlords could face fines of up to £7,000 or even £40,000, depending on the nature of the violation.

  • Landlords Remain Profitable Despite Concerns Over Renters’ Rights Act, 2026

    Landlords Remain Profitable Despite Concerns Over Renters’ Rights Act, 2026

    As of May 2026, most landlords in the UK are still reaping good profits from their portfolios, with increased yields of 6.5%, up slightly from the previous quarter. However, the newly enacted Renters’ Rights Act is causing concern, particularly for landlords with smaller portfolios, according to data from Aldermore and Pegasus Insight.

    Impact of Renters’ Rights Act on Landlords

    Aldermore’s data reveals that the Renters’ Rights Act, which passed into law on 1 May, is causing concern for landlords with smaller portfolios, with their expectations for future lettings business dropping. Only 8% of landlords believe the new legislation will positively impact their portfolios, while a substantial 70% expect an overall negative effect. In addition, 90% of landlords are also concerned about potential backlogs in the court system for evicting tenants.

    Scenario: Small Portfolio Landlord

    Consider a landlord with a £200,000 interest-only Buy to Let (BTL) mortgage and a smaller portfolio. With the current base rate of 3.75%, their monthly cost is approximately £625. However, the new legislation could potentially increase their operating costs and reduce their profit margin, impacting their ability to service their mortgage.

    Scenario: Large Portfolio Landlord

    On the other hand, a landlord with a larger portfolio and a £500,000 interest-only BTL mortgage, paying around £1,563 per month, may be better positioned to absorb these changes. Aldermore’s data shows that larger portfolio landlords are more likely to report higher levels of profit, with 84% reporting their lettings activity as profitable.

    Market Trends and Context

    While the Renters’ Rights Act is causing some concern, it’s important to note that the average achieved yield for landlords is 6.5%, up slightly since last quarter. This is despite a decline in perceived tenant demand, which has fallen every single quarter since Q1 2024, from 83% to 58% in Q1 2026. This is the lowest level of landlord positivity since Q2 2023, nearly three years ago.

    Comparison with Previous Years

    Compared to Q1 last year, when 73% of landlords classified demand as strong, the figure has significantly dropped to 58% in Q1 2026. This decline in demand, coupled with the introduction of the Renters’ Rights Act, is contributing to the drop in landlords’ expectations for their lettings business.

    Current Base Rate and Its Impact

    The current Bank of England base rate is 3.75%, which influences the interest rates on BTL mortgages. While this rate is relatively stable, any future increases could further squeeze landlords’ profit margins, especially in light of the new legislation.

    Frequently Asked Questions

    What is the Renters’ Rights Act?

    The Renters’ Rights Act is a new legislation passed on 1 May 2026, which is causing concern among landlords, particularly those with smaller portfolios.

    How many landlords believe the Renters’ Rights Act will negatively impact their portfolios?

    According to Aldermore’s data, 70% of landlords expect the Renters’ Rights Act to have an overall negative effect on their portfolios.

    What is the current average yield for landlords?

    The average yield for landlords as of Q1 2026 is 6.5%, which is a slight increase from the previous quarter.

    What is the current perception of tenant demand?

    As of Q1 2026, 58% of landlords still classify tenant demand as strong, although this is a decrease from 73% in Q1 last year.

  • Understanding the Impact of the Renters’ Rights Act on UK Landlords in 2026

    Understanding the Impact of the Renters’ Rights Act on UK Landlords in 2026

    As of May 2026, the first phase of the Renters’ Rights Act (RRA) is in effect, causing concern among 80% of landlords according to Q1 2026 Landlord Trends data from Pegasus Insight. This new legislation is expected to significantly impact the UK’s rental market, with landlords predicting a negative effect on their lettings business and the market overall.

    The Renters’ Rights Act: What it Means for Landlords

    Increased Selectivity and Rent Increases

    Four out of five landlords believe the RRA will make them more selective about who they let to. Furthermore, 75% of landlords planning rent increases say they will do so to offset the anticipated impact of the RRA. For instance, a landlord with a £200,000 buy-to-let mortgage may see their monthly cost rise from £917 to £975, an increase of £58 per month or £696 per year, to cover potential losses due to the RRA. This increase could be even more significant for landlords with larger portfolios. For example, a landlord with five properties each with a £200,000 buy-to-let mortgage could see their total monthly costs rise from £4,585 to £4,875, an increase of £290 per month or £3,480 per year.

    Impact on First-time Buyers and Remortgagers

    First-time buyers and remortgagers could also feel the effects of the RRA. For example, a first-time buyer with a 90% loan-to-value (LTV) on a £250,000 property could see their monthly repayments increase from £1,144 to £1,197, an increase of £53 per month or £636 per year, if landlords pass on the costs. Similarly, a remortgager with a 75% LTV on a £300,000 property could see their monthly repayments increase from £1,373 to £1,437, an increase of £64 per month or £768 per year.

    Stability in the Rental Sector

    However, Pegasus Insight’s Q1 2026 Tenant Trends research suggests the rental sector may already be more stable than landlords anticipate. The typical renter has spent more than five years in the same home, and two thirds of tenants intend to stay in their current property for another 4.3 years on average. Instances of forced movement are relatively low, with just 3% of tenants reporting that they have been served an eviction notice in the last 12 months and only 0.6% contesting an eviction notice.

    Market Context: Comparing to Previous Rates and Prices

    Compared to the Bank of England base rate of 3.75% as of April 2026, the potential increase in rental prices due to the RRA may seem significant. However, it’s important to remember that this is a reaction to a new legislation, not a reflection of the overall health of the rental market. In fact, compared to the same period 12 months ago, the base rate has remained relatively stable, indicating that the fundamentals of the market remain strong despite the introduction of the RRA.

    Frequently Asked Questions

    What is the Renters’ Rights Act?

    The Renters’ Rights Act is a legislation that came into effect in May 2026. It aims to protect renters and has caused concern among 80% of landlords who believe it will negatively impact their lettings business.

    How will the Renters’ Rights Act affect landlords?

    According to Q1 2026 Landlord Trends data, 75% of landlords planning rent increases will do so to offset the anticipated impact of the RRA. Additionally, 80% of landlords say the act will make them more selective about who they let to.

    How stable is the rental market?

    Despite concerns about the RRA, Pegasus Insight’s Q1 2026 Tenant Trends research suggests the rental sector may be more stable than landlords anticipate. The typical renter has spent more than five years in the same home, and two thirds of tenants intend to stay in their current property for another 4.3 years on average.

    How does the Renters’ Rights Act compare to the Bank of England base rate?

    While the Bank of England base rate as of April 2026 is 3.75%, the potential increase in rental prices due to the RRA is a reaction to new legislation, not a reflection of the overall health of the rental market.