The Renters’ Rights Act became law on May 1st, promising what some called the biggest shake-up of renting in decades. Three months in, the picture is still coming into focus. Early feedback from landlords, letting agents, tenants and property experts suggests the reality is more complicated than the hype. Some concerns have proven valid. Others appear to have been overstated. And outcomes vary depending on location, property type and how landlords adapt.
Landlord exits slow in some areas
Before the law passed, there were widespread fears that landlords would flee the rental market in large numbers. Hamptons data tells a more subtle story. In June, the share of landlords selling fell slightly, dropping from 23% to 20% in London. Several factors seem to be at play. Many landlords who planned to exit had already done so during years of rising taxes, interest rates and regulatory pressure. Others are deterred by new rules preventing them from re-letting for 12 months after serving notice to sell. A slower sales market, particularly for flats in southern England, is also making landlords more cautious.
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Regional differences stand out. London still leads the country, with 20.3% of homes listed for sale in June having been rented within the last five years. That’s more than double the share in the South East, where 9.5% of sales listings were previously rental properties. Scotland and Wales, which have operated stricter rental rules for several years, show landlord selling at roughly half to two-thirds the rate of most English regions. David Fell of Hamptons notes that landlords in the Midlands and North appear less exposed to profit pressures affecting higher-value southern markets.
Rent increases play out unevenly
Predictions before the law took effect included a wave of pre-May rent hikes as landlords rushed to raise rents while still allowed to do so freely. Richard Donnell, executive director at Zoopla, sees the market moving at two speeds. Lower-cost areas show the strongest growth, with rents up nearly 5% where average rents sit below £750 a month. Some locations are seeing annual increases of 7–9%. Meanwhile, rents are falling in cities including Birmingham and Nottingham, while growth in more expensive markets remains constrained by affordability. The new law requires landlords and agents to give advance notice of rent increases, which means landlords will need solid data to justify any increases if tenants challenge them at a tribunal.
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Court challenges remain rare despite fears
The shift away from no-fault evictions means landlords now rely on Section 8 notices, which require them to state a reason for repossession. Previously, Section 21 notices concealed why tenants were being asked to leave. Going forward, researchers will have access to data showing whether fewer tenants receive notices overall, or whether the numbers stay similar but with reasons now documented.
Eviction claims spike before deadline
Possession instructions at Landlord Action, a specialist firm, were 28% higher in July than a year earlier. Paul Shamplina, who runs the firm, calls it one of their busiest months in a year, aside from the spike before the Renters’ Rights Act took effect. Landlords had rushed to meet a July 31 deadline for issuing notices under the old Section 21 rules. Many left it until the final days, and some discovered that instructing a solicitor just before the deadline did not guarantee a claim could be filed in time. Every document had to be reviewed carefully, and errors in the original notice could result in rejection. Those who made the deadline now face a court system already understaffed and struggling with existing caseloads, meaning potentially long waits for claims to be processed and enforced.
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Of the new possession cases recorded in July, 39% involved rent-related grounds under Grounds 8, 10 or 11. Thirty percent of cases issued a Ground 1A notice, indicating the landlord planned to sell. Eight percent involved a landlord or family member intending to occupy the property. The remaining 29% relied on other grounds, with some cases using more than one. Rent arrears and landlord exits account for the bulk of repossession actions so far.
