The private rented sector is facing a potential perfect storm as nearly a quarter of a million households in England are set to leave the market within two years, despite government assurances that the sector remains stable. Research by Pepper Money estimates that 220,000 households will exit the sector by 2026, with over 65,000 tied to the recently introduced Renters' Rights Act.
A recent survey conducted by property consultancy firm Allsop found that two in five landlords are unlikely to continue letting homes following the implementation of the act. This number swells to a staggering 51% among single-property landlords, raising concerns about the long-term viability of the sector.
The government has launched an initiative to track the impact of the Renters' Rights Act through a PRS data drive. However, Housing Minister Matthew Pennycook's assertion that the private rented sector remains stable at around 19% of households in England is disputed by many. Data from the English Housing Survey 2024-2025 supports this claim, but some argue it does not accurately reflect the complexities on the ground.
The Ministry of Justice's official possession statistics show a decrease in accelerated possession claims in England – down 12% compared to the same quarter last year. However, opposition parties have questioned the government's response, with Conservative MP Andrew Snowden accusing them of downplaying the scale of the problem. The Labour Party has also called for greater support for landlords and tenants affected by the changes.