The Renters’ Rights Bill is here – Its expected impact on the UK rental market
Andy Noton, 21 January 2026
Andy Noton, 21 January 2026
The Renters’ Rights Bill, which aims to improve tenant protections, is set to have a significant impact on the UK rental market.
While the bill is designed to offer greater security for renters, it introduces a range of challenges for landlords, with potential financial consequences.
It is important to understand these key measures in the Act and how they might affect landlords, investors and the rental market as a whole.
One of the major concerns raised by the Renters’ Rights Bill is the expected delays in obtaining vacant possession of rental properties.
The Act removes a key mechanism for evicting tenants, the Section 21 notice, which has allowed for tenants of Assured Shorthold Tenancies to be removed without reason, as long as two months’ notice is given.
In its place, the existing Section 8 notice will be reformed, which provides limited grounds for eviction, such as substantial rent arrears, anti-social behaviour and the landlords own use.
Some of these grounds will be changed under the act to give tenants more rights and certainty within their tenancy.
This is likely to result in longer periods of rent arrears, greater challenges in moving a tenant out to sell a property or reclaiming a property where there are concerns about damage to it.
Whilst many will agree that these moves will help to remove rogue landlords from the market, it will also penalise many other investors.
There are concerns that these changes will also increase the costs associated with waiting for possession and the prolonged disruption to rental income could make some investments less profitable.
As a result, landlords may consider exiting the market, reducing the number of rental properties available, which may exacerbate the ongoing housing crisis.
Under the act there are a number of new provisions for increasing rents aimed at helping to prevent sudden and significant changes to rental agreements.
From 1 May 2026, landlords can only increase the rent once every 12 months via a formal Section 13 notice. Any existing rent review clauses in tenancy agreements will also become void.
Before rent can be increase, landlords must provide tenants with at least two months' written notice, instead of the current one months’ notice.
Most importantly, rent increases must be in line with the local market rent. The Government has not introduced a rent cap or rent controls, but the increase should reflect what a landlord could expect to receive if letting to a new tenant on the open market.
Landlords and agents are also banned from encouraging or accepting rental offers above the initial advertised price.
Tenants will have enhanced rights to challenge a proposed rent increase they believe is above the market rate by applying to the First-tier Tribunal.
This tribunal will not be able set a higher rent than the amount the landlord initially proposed and the new rent will only apply from the date of the Tribunal's determination.
In cases of undue financial hardship, the Tribunal can defer the implementation of the rent increase by up to a further two months.
While the bill aims to make rents more affordable for tenants, it could have the unintended consequence of stifling the profitability of rental properties for landlords.
The Renters’ Rights Bill introduces several new regulatory requirements that will increase the cost of renting properties.
For example, landlords will be required to comply with more stringent regulations regarding property maintenance, tenant rights and dispute resolution.
While these changes are intended to ensure safer and fairer living conditions for tenants, the added regulatory burden will likely increase landlords’ costs in the form of legal advice, compliance checks and property management.
Moreover, the bill’s provisions on deposits are set to create additional financial strain for landlords.
The inability to recover damages caused by tenants’ pets, combined with the potential for breaches that exceed the standard 5-week deposit, will increase landlords' exposure to financial loss.
This could lead to higher operational costs for landlords as they seek alternative ways to manage tenant damage and repair costs.
One of the most significant concerns regarding the Renters’ Rights Bill is the uncertainty around how the new regulations will be enforced.
With the introduction of the Ombudsman, a new database of landlords and increased powers for local authorities, it remains unclear how these changes will be implemented in practice.
Landlords will need to comply with new registration and reporting requirements, but it is uncertain how local authorities, many of which are already under financial strain, will exercise their new powers to regulate landlords.
Additionally, there is a risk that landlords could face penalties or fines due to a lack of clarity regarding the rules, which could result in further legal and administrative costs.
The uncertainty surrounding how the Ombudsman will operate and what the new database will require from landlords adds to the overall regulatory risk, making it more difficult for landlords to navigate the changing landscape.
Given these changes landlords could see a reduction in available rental stock, especially in areas where landlords are already struggling with high operational costs.
As the rental market shrinks, the value of properties in the rental sector could decline, with landlords less inclined to invest in new rental properties or maintain their existing portfolios.
This reduction in supply, combined with rising demand for rental properties, could push rents even higher, further exacerbating the housing crisis and making it more difficult for tenants to find affordable accommodation.
While the Renters’ Rights Bill seeks to improve tenant protections, it introduces significant challenges for landlords.
Landlords and investors should review their portfolios early to understand the financial, regulatory and operational impact of the new rules.
Our dedicated property team advises landlords on navigating rental market reform, assessing risk, and planning for the long-term implications of the Renters’ Rights Bill. If you are concerned about how the legislation may affect your rental properties or future investment decisions, please get in touch Partner, Andy Noton (andrewnoton@lubbockfine.co.uk).
