The Renters’ Rights Act, introduced with the intention of strengthening tenant protections, appears to be impacting the availability of rental properties. Recent data from Property118 highlights a tightening rental market, with landlords increasingly opting to sell their buy-to-let assets rather than navigate the new regulatory environment. This shift is reducing the number of homes available to rent, contributing to upward pressure on rents.
Our own analysis of UK rental listings shows a decline in new rental stock entering the market since the Act’s implementation. This trend is particularly pronounced in regions where rental yields are already thin, such as parts of northern England and Wales. Landlords in these areas report that increased compliance costs and perceived risks have made letting less financially viable. Consequently, supply is failing to keep pace with demand, pushing rents higher and making affordability worse for tenants.
Propertymark’s call for government investment in the private rented sector is a pragmatic response. Without incentives or support, the sector risks further contraction. Measures could include tax reliefs, grants for property improvements, or streamlined compliance processes. For investors, this environment demands greater scrutiny of regulatory changes and a cautious approach to new acquisitions.
In sum, the Renters’ Rights Act has shifted the balance between tenant protections and landlord participation. While tenant rights are important, the current market signals that supply-side considerations must also be addressed to maintain a functioning rental market.
Source: https://www.property118.com/renters-rights-act-blamed-for-shrinking-rental-supply/
