"A strikingly small proportion of tenants are prepared to navigate the new system. This highlights a critical challenge for the PRS"
- Tom Goodman - Goodlord Group
A survey of 2,650 landlords, letting agents and tenants points to growing unease around the renters’ rights act and its potential impact on property investment across the private rented sector.
Research carried out by Goodlord shows that 82% of landlords are concerned about the incoming legislation, with 44% saying they are very concerned. The findings suggest this sentiment could influence supply, as 75% of landlords report that regulation has made them less likely to expand their portfolios.
Plans to scale back are already emerging. Nearly half of landlords, 49%, say they intend to sell or reduce their stake in the market within the next 12 months. Broader projections indicate that more than 200,000 rental homes could exit the sector by the end of the year.
Regulation now stands out as the dominant pressure on landlords’ property investment decisions. Around 44% identify it as the main barrier to growth, compared with 14% who point to taxation and 12% who cite economic uncertainty.
The findings form part of a wider report examining sentiment across the private rented sector ahead of the legislation’s introduction. It outlines how different groups are preparing for the operational and commercial changes expected under the new framework.
Agents’ readiness under the renters’ rights act
Letting agents report high levels of confidence, with 89% saying they feel prepared for the changes. However, a closer look at specific responsibilities suggests a more mixed picture.
Only 61% say they are ready to manage eviction processes, which will undergo significant reform under the renters’ rights act. This gap between overall confidence and operational readiness raises questions about how smoothly the transition will be handled.
The issue extends beyond day-to-day processes. At a recent industry event in London, 33% of letting agency leaders said they believe the legislation will be bad for business, while 18% indicated they do not expect to remain in the lettings sector within five years.
Tom Goodman, managing director at Goodlord Group, said: “Landlords are sending a very clear signal. When nearly half are considering selling within the year, it points to a market under strain. The Renters’ Rights Act aims to improve outcomes for tenants, but these findings show the scale of concern among landlords about how the changes will work in practice.
“The data on agents is equally telling. While confidence levels appear high on the surface, the gap between perceived readiness and operational capability - particularly around complex areas like evictions - highlights a clear need for more support.
“What’s critical now is ensuring the industry has the clarity, tools, and guidance it needs to navigate the transition with confidence.”
Tenants’ understanding remains limited
The research also points to low awareness among tenants, suggesting that the renters’ rights act may not achieve its intended outcomes without clearer communication.
Only 18% of tenants say they feel fully confident in their rights, while 38% believe better information about the changes would improve their renting experience. This places added responsibility on landlords and agents to support tenant understanding.
Goodman said: “A strikingly small proportion of tenants are prepared to navigate the new system. This highlights a critical challenge for the PRS."
“Rights alone don’t improve outcomes. The RRA can only be effective if it’s understood, communicated and applied by all stakeholders in the PRS, including the tenants it was conceived to protect.”
