Why the Renters’ Rights Act Could Destroy the UK Rental Market

The Renters’ Rights Act came into force on May 2, 2026, introducing significant structural changes to the United Kingdom’s private rental sector. The legislation removes several long-standing landlord powers and alters how rental prices are negotiated and contested, sparking debate over the future availability of rental housing.

The central pillar of the Act is the abolition of Section 21 evictions, commonly referred to as no fault evictions. These provisions previously allowed landlords to regain possession of a property once a fixed-term tenancy expired, regardless of whether the tenant had breached the lease.

Under the new law, tenancies are effectively indefinite. This shift removes the certainty landlords previously had regarding the date they could reclaim their property, which may now require navigating court backlogs and bailiff queues to regain possession.

Reporting indicates that thousands of landlords issued last-minute Section 21 notices during the final weeks of April 2026 to avoid the restrictions imposed by the new Act.

Restrictions on Rental Bidding and Payments

The Act introduces new prohibitions on how prospective tenants compete for properties. Landlords are now banned from accepting rental offers that exceed the initial asking price, and tenants are prohibited from paying rent in advance to secure a lease.

Ben Hopkinson, head of housing and infrastructure at the Centre for Policy Studies, suggests these measures may disadvantage first-time renters. He argues that without the ability to compete on price or advance payments, landlords may instead rely on CV checks, references from previous landlords, or personal networks.

According to Hopkinson, this shift could prove disastrous for young people attempting to move out of childhood homes, as those without an established rental history or higher incomes may appear riskier to landlords on paper.

The Tribunal System and Rent Challenges

The legislation also establishes a mechanism for tenants to challenge rental increases through a tribunal. While a challenge is pending, tenants continue to pay their existing rent, and any subsequent tribunal decision is not backdated.

The law further stipulates that a tribunal cannot suggest a rental price higher than the one originally proposed by the landlord.

Concerns have been raised regarding the capacity of the judiciary to handle this new volume of cases. Data indicates You’ll see 11m private renters in the UK, while there are only 34 tribunal judges available to oversee these disputes.

Swedish economist Assar Lindbeck famously called rent control “the most efficient technique presently known to destroy a city – except for bombing”.

Ben Hopkinson, Centre for Policy Studies

Hopkinson contends that the combination of limited judicial resources and the lack of incentive for tenants to avoid tribunals effectively introduces rent control through a backdoor mechanism.

Private Rental Market Trends

The implementation of the Renters’ Rights Act follows a decade of increasing costs and regulatory pressures for landlords, including changes to mortgage interest tax deductions and heightened energy efficiency requirements.

These factors contributed to a net loss of 300,000 homes in the private rental market between 2016 and 2023.

Recent market data shows a continuing trend of landlords exiting the sector, with 254,000 buy-to-let properties put up for sale over the last year.

Hopkinson warns that the new Act may accelerate this exodus, potentially leading to a further reduction in the number of available rental properties across the country.