How has the Renters’ Rights Act affected the market?

The Renters’ Rights Act is one of the most significant changes to housing legislation in decades. In principle, it’s intended to improve the quality and stability of the rental market. However, there is widespread debate about how the regulations could influence investor appetite, rental supply and pricing.

The associated Bill entered parliament in September 2024 and was implemented on 1 May 2026. Using data produced for Investec by TwentyCi, we’ve explored key trends in the London rental market between Q1 2024 and Q1 2026. Here are the findings:

1. Listing volumes are increasing (but this doesn’t mean stock is rising)

The data shows that the volume of rental listings in London has increased over the past two years. In Q1 2026, the number of properties available reached 113,707 – 15% higher than Q1 2024 and 18% higher than Q1 2025.
 

This does not necessarily mean underlying stock levels have increased. Instead, it may point to greater churn in the market at a time of wider change, which included improved mortgage affordability for first-time buyers*.

Analysis suggests build-to-rent developments may have added to the number of available units too. As William Scoular, Head of Business Development for Real Estate at Investec explains: “The renewed focus on high-quality accommodation favours large-scale developers. It is therefore unsurprising that institutional investors tell us they are maintaining their investment in the build-to-rent sector.”
 

2. Some landlords are leaving the market

The data shows a surge in the sale of rental properties in the months after the Renters’ Rights Bill was first introduced in September 2024. In Q1 2025, 50% of listings were for properties that had been rented out in the previous three years – up from 36% the previous quarter and 40% in the 12 months before.

This spike was even more pronounced in Inner London, where the proportion of sales listings that were for ex-rental properties rose to 60% in Q1 2025, compared with 50% in Q1 2024.
 

It should be noted that changes to the tax landscape, including an increase in Stamp Duty Land Tax rates that took effect in 2025, may have also contributed to market activity.
 

3. A small proportion of ex-rentals have been relisted by other landlords

A sample of sales transactions taken from the height of this activity in Q2 and Q3 2025 shows that almost 90% of these ex-rental properties remained off market. In London, one in 10 homes were re-let – 5,038 of the 46,953 former rental properties sold during that period. This means that the overall level of rental stock is falling.

However, there may be some opportunities for those landlords who remain invested. As Private Banker Mandeep Dhillon explains: “At a time when some private landlords are exiting the market, we have been asked to help property entrepreneurs purchase additional units. Typically, these clients have administrative support to handle increased regulation and have spread their risk across multiple units.”  

4. Rents for new tenancies have remained stable

The impact of the legislation on new tenancies appears limited. In London, TwentyCi data shows that the median rent for agreed lets has remained broadly stable between Q1 2024 and Q1 2025 (£2,200) and Q1 2026 (£2,197). In Inner London, the median rent stood at £2,300 during this period, compared with £1,800 for Outer London.
 

The ONS Price Index of Private Rents, which includes existing tenancies and controls for property type, shows greater rental inflation in London of 11% year-on-year in Q1 2025, but limited growth of 1% year-on-year in Q1 2026. 

5. Longer-term changes may still emerge

In the future, further shifts could emerge as the market continues to adjust. As Liam Gribben, Executive Director of M&A for Property Services, explains: “If the Renters’ Rights Act results in a more stable and professionalised sector, rents could move higher as costs are passed on.”

However, he notes that much of the Act’s impact may already have been absorbed. “Industry feedback suggests the Act is not a major driver of strategy alone, as much of its impact is already reflected in existing plans.”

* Source: Nationwide

Important information:

This content is for general information purposes only and should not be used or relied upon as professional advice. It is advisable to contact a professional adviser if you need financial advice. The opinions featured are not those of Investec.

Minimum eligibility criteria and terms and conditions apply. Your property may be repossessed if you do not keep up repayments on your mortgage. Investec residential mortgages are only available for residential properties in England or Wales and are primarily available to UK residents and subject to eligibility.