Ahead of the Renters’ Rights Act (RRA) coming into force on 1 May, there were plenty of concerns across the industry.

Landlords were perhaps most worried about the removal of Section 21 and fixed-term tenancies, fearing it would become harder and take longer to remove troublesome tenants and regain possession of their properties. There were also widespread predictions that large numbers of landlords would sell up and leave the market, reducing the supply of rented homes.

At the same time, while many of the new laws were designed to give tenants greater protection, the ban on bidding wars and restrictions on rent increases raised concerns that advertised rents could be inflated, making accommodation less affordable.

So, more than four months in, what has actually been the impact of the RRA?

Some landlords are selling up…but others are still investing

Although some landlords have recently sold their properties, many had simply reached the end of their planned investment period. Those who entered buy-to-let during its growth in the late 1990s and early 2000s are now approaching retirement age and may always have intended to sell, with the RRA simply accelerating their plans.

According to Pegasus Insights, the number of landlords who have actually sold in the last year is also lower than the number who previously said they intended to. In the 12 months to June 2026, 22% sold rental properties, compared with 38% who had expressed an intention to do so.

While 9% of landlords say they plan to leave the market over the coming year, this could ultimately be closer to 5% or 6%. And although fewer landlords are buying, strong tenant demand and competitive yields mean purchases are still taking place. As the RRA rules become more familiar and initial concerns ease, we expect investment to increase again.

Rents haven’t risen as much as feared

Zoopla data shows average rental growth of 2.1% in the year to June, below inflation of 2.6%. However, three-quarters of rental areas recorded higher increases, with more affordable locations seeing annual rises of 5% or more. This means many landlords’ rental returns have held their value, while rents continue to rise at a steady rate.

In practice, however, we’re finding that advertised rents don’t always reflect the final agreed rent. Good landlords with good tenants are often agreeing to rents below the advertised price to secure the right tenant and reduce void periods.

With average earnings growing by 4% – almost twice the rate of average rent growth – affordability is actually improving for tenants. This is the third consecutive year in which earnings have outpaced rents, and Zoopla expects rental inflation to remain between 2% and 3% for the rest of the year.

Some tenants are struggling to secure accommodation

The restriction preventing landlords from requesting more than one month’s rent in advance has been particularly challenging for international students, who previously used several months’ rent upfront if they couldn’t meet all referencing criteria.

With the removal of Section 21, some landlords are also less willing to take a risk. However, tenants who struggle to meet financial referencing requirements can consider offering a guarantor – a long-established solution for students and others in this position.

Overlapping tenancies are increasing

Tenants have always faced the possibility of paying double rent for a short period when moving home, as landlords want to minimise gaps between tenancies.

Previously, with a one-month notice period, this overlap was often just one or two weeks. Now tenants must give two months’ notice, meaning some are facing five or six weeks of overlap, creating a significant financial hurdle.

However, in many cases landlords can secure new tenants quickly and release outgoing tenants from their obligation to pay the full two months’ rent. Communication is key, and a professional agent should be able to help both parties manage the transition.

New pet rules have been popular, but there is still confusion

Around 50% of tenants either already have a pet or plan to get one within the next year, encouraged by the RRA changes. However, there appears to be some misunderstanding around how the new rules work.

Rightmove reports that searches for pet-friendly properties have more than halved since the RRA came into force, while our own research found that 93% of landlords have not yet received a request from a tenant to keep a pet.

Some tenants believe they are automatically entitled to have a pet, without realising they must request permission from their landlord in writing and that a landlord can refuse where there is a valid objection.

As a result, some tenants may only disclose a pet after signing their tenancy agreement, or landlords may discover one during a property inspection. Asking the right questions and fully vetting tenants before agreeing to a tenancy therefore remains important.

What happens next?

While there have naturally been some teething issues with the implementation of the RRA, there has not been as much disruption as some initially feared. As with any major legal change, there is a transition period while landlords, tenants and agents become familiar with the new rules. If you’re looking for a letting agent to fully manage your property and take the weight off your shoulders, get in touch with your nearest Leader's branch for a no-obligation chat.

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