The Renters’ Rights Act 6 months on: what impact has it had on landlords and tenants?

Now, six months on, how has the RRA – which applies to properties with an annual rent of up to £100,000 - played out in practice? Here’s the view on the ground from our letting agents across the country:

Tenants still want long-term homes

Prior to the introduction of the Renters' Rights Act, many landlords expressed concerns that the move from Assured Shorthold Tenancies to periodic tenancies would create a revolving door of tenants, leading to greater turnover and reduced certainty.

To date, the evidence suggests otherwise. Most tenants continue to prioritise long-term security and stability. Moving home remains both costly and disruptive, meaning the vast majority of renters are still looking for somewhere they can put down roots rather than a short-term solution.

Where tenants have chosen to leave earlier than expected, the reasons are largely the same as they were before the legislation came into effect. Unforeseen career moves, international relocations, and changes in personal circumstances continue to be the primary drivers of tenant mobility.

The experience so far suggests that concerns around widespread tenancy churn may have been overstated. For most renters, the fundamentals remain the same: finding a well-located, high-quality home they can stay in for the long term.

Landlords Can Still Regain Possession

Perhaps the biggest misconception surrounding the RRA was the belief that once a tenant moves in, landlords can no longer recover their property. While this remains one of the most common topics of conversation among landlords, this is largely driven by misunderstanding rather than the reality of the legislation.

While the abolition of Section 21 – ‘no-fault’ evictions – has changed the possession process, it has not removed a landlord's ability to regain their property when there is a legitimate reason to do so. Landlords can still serve notice for most of the reasons they would have done so previously, including where they intend to sell the property or move back into it themselves.

Importantly, the loss of Section 21 has had less practical impact than many anticipated. Historically, the vast majority of tenancies did not end through a no-fault eviction. More often than not, tenants moved on of their own accord.

What is more important than ever, however, is having the right professional guidance. As the legislation has evolved, much of the uncertainty within the market has stemmed from misunderstandings around the new rules rather than the rules themselves. Working with an experienced letting agent can help landlords navigate the new framework, understand the available possession grounds and ensure they remain compliant while protecting the long-term value of their investment.

The key takeaway for landlords is that while the framework has changed, the fundamental position has not. Landlords still have routes to regain possession when required, and in practice, many tenancies end for the same reasons they always have.

Rent review concerns have not materialised

One of the more widely debated aspects of the Renters' Rights Act was the removal of fixed-term tenancies and the move to a simpler rent review process. It was thought that this could lead to a significant increase in tenants challenging rent increases through the First-tier Tribunal (FTT), creating additional delays and uncertainty for landlords.

Six months on, our data* suggests these concerns have not materialised. Of the tenants who received a Section 13 rent increase notice during this period, fewer than 0.3% referred the proposed increase to the First-tier Tribunal for determination.

This reflects the reality that, in most cases, Section 13 rent reviews are being used to align rents with genuine market levels rather than impose excessive increases. The vast majority of reasonable rent adjustments continue to be accepted by tenants without the need for formal intervention by the FTT.

Rising Rents Are About Supply, Not Just Legislation

Another common concern ahead of the Renters' Rights Act was that landlords would exit the market, reducing the supply of rental homes and driving rents up. While some landlords chose to sell in the run-up to implementation, the mass exodus many anticipated has not materialised. Instead, most have adapted to the new system, supported by good advice and a growing understanding of how the legislation works in practice.

Rental stock does, however, remain constrained in certain parts of the market. Some landlords who were already considering an exit have continued to bring properties to the sales market, with the new rules often acting as an additional factor rather than the sole reason for selling. That said, we’ve seen a significant number of landlords returning to the lettings market if they cannot get the sales value they require.

Higher mortgage costs, taxation and service charges have increased operating expenses but, despite headwinds, parts of the rental market have remained resilient. As a result, rental growth has remained positive in these markets, helping some landlords improve overall yields.

In London, landlords are often achieving offers at or around the asking rent, particularly where there is strong domestic and international demand. Competition is strongest for homes with sought-after features such as private gardens, outdoor space, home offices, excellent transport links and high-quality finishes.

Regional markets tell a slightly different story. Correct pricing from the outset is key to attracting interest; a choice of tenant profile is one of the highest priorities for many landlords, as well as minimising void periods over the winter months.

This is reflected in Savills latest prime rental index, which shows annual rental growth of 1.9% in prime central London, 2.9% in outer prime London, 2.1% across the prime commuter zone and 0.7% in the Cotswolds and South West. While rents continue to rise, growth remains closely linked to local market conditions and affordability rather than legislative change alone.

Six months on, there is little evidence to suggest that the Renters' Rights Act is the primary driver of rental growth or, indeed, the disruptive force many landlords feared. However, still in its infancy, it may be too early to draw definitive conclusions about the RRA’s longer-term impact on market behaviour and supply.

*Savills letting divisional data

Further information

Contact Amelia Greene