Date Published 12 June 2026
The Renters' Rights Act is one of the biggest changes to the private rented sector in recent years. Its aim is to improve tenant security and raise standards, but there is growing concern that the reforms may also bring unintended consequences for landlords, tenants and the wider rental market. One of the biggest concerns is landlord confidence. Many landlords are already facing higher borrowing costs, increased regulation, higher stamp duty, reduced tax relief and the prospect of future EPC requirements. For some, the Renters' Rights Act may be another reason to consider selling.
This matters because when landlords leave the market, rental supply falls. If tenant demand remains strong, fewer available homes can place further upward pressure on rents. Recent market data highlights this imbalance. Knight Frank reported that average rents in prime outer London increased by 3.2% in the year to May, the strongest annual rise since June 2024. Prime central London saw a smaller 1% annual increase, partly because higher-value markets have seen some discretionary owners let their properties while the sales market remains weaker.
Supply remains a key issue. New rental listings across prime central and prime outer London were 13% below the five-year average in May and 11% lower than the same month last year. Knight Frank also reported six new prospective tenants for every new rental property coming to the market, the highest ratio since September 2022. The Renters' Rights Act is therefore not happening in isolation. It is the latest in a series of challenges for landlords, including higher stamp duty, the withdrawal of mortgage interest tax relief, increased finance costs and the potential requirement for rental properties to meet an EPC C rating in future.
Mortgage lender Paragon has also warned that increased costs for landlords are likely to create pressure on rental levels over time. This follows wider market evidence showing tenant demand continuing to rise while landlord instructions remain weak. The issue is not whether tenant protections are important. They are. The concern is whether repeated pressure on landlords reduces supply to the point where tenants face fewer choices and higher rents.
For landlords, the message is clear: now is the time to review your position carefully. Rental values, compliance, EPC ratings, mortgage costs, tenancy documentation and long-term investment plans should all be assessed before making any major decisions. Well-managed, compliant rental properties will remain in demand. However, landlords will need to be more proactive, better informed and commercially disciplined in order to protect their investment in a more regulated market.
As your devoted Agent and Property Manager, Adams Estates are helping landlords understand the new rules, assess their options and continue managing their properties effectively in a changing rental landscape.
