Landlords are reeling from the impact of the Renters' Rights Act, just one month after it came into force on May 1st. A stark new survey shows that nearly nine in ten landlords believe the legislation has damaged the rental market, citing higher tenant turnover and dwindling profit margins.
Of 30 landlords questioned by rental services provider Housing Hand, a significant 83% reported a negative impact since the Act's introduction. Only 3% saw benefits, while 13% felt no change had occurred. Despite all respondents acknowledging the new requirements, 83% feel the government is failing to adequately support them during this transition.
One pressing concern highlighted by the survey is that many tenants are still unaware of their responsibilities under the Act. Seven out of ten landlords reported their tenants did not fully grasp these changes. Graham Hayward, Managing Director at Housing Hand, observed a widespread lack of clarity regarding how these adjustments affect tenancy agreements. He noted the official Information Sheet has undergone two updates this month alone.
On-the-ground effects are already being felt. A student HMO landlord reported numerous early tenant departures affecting their expected August income, while another landlord mentioned a professional tenant serving notice within the first month, leading to increased administrative work and potential disruption for other housemates.
Looking ahead, landlords are also bracing themselves for further changes. Although some agents have seen minimal immediate disruption due to existing practices aligning with new rules, there is apprehension about future phases – particularly potential new EPC requirements that could lead to increased maintenance costs. Some landlords plan to increase rents annually to match market rates and protect their income, potentially affecting tenant affordability.
The UK's property market remains complex, with average asking prices for homes standing at approximately £375,000 in July 2026, according to Rightmove data. This represents a modest 0.5% monthly rise but a 1.2% yearly decline. Regional variations persist, with London seeing asking prices averaging around £640,000.