"While the Renters’ Rights Act is understandably being viewed as a challenge by many landlords, it also represents a shift towards a more structured and professional rental market - in theory."
- Roma Sharma - Rushbrook & Rathbone
The upcoming Renters’ Rights Act could increase costs and complexity for landlords, but it may also support a more structured rental market that favours professional operators, according to insight from property management firm Rushbrook & Rathbone.
The firm’s analysis of recent industry data points to a sector that has remained relatively resilient despite regulatory pressure. Average rental income per property has risen from £9,860 to £11,352, while yields have edged up from 6.3% to 6.4%. At the same time, the share of landlords reporting rental arrears has fallen from 29% to 27%, indicating improved tenant stability.
However, landlord behaviour is shifting. Portfolio sizes have dropped from an average of 7.3 to 6.6 properties, and more landlords are choosing to sell rather than expand their holdings. Rising costs and increasing compliance requirements continue to shape this trend, alongside regulatory changes already in place and those expected in the coming months.
Rushbrook & Rathbone identify five areas where the Renters’ Rights Act could benefit professional landlords, particularly those with well-managed and compliant portfolios.
Clearer grounds for possession
The planned removal of Section 21 ‘no-fault’ evictions will coincide with more structured possession grounds under Section 8. This introduces greater legal clarity for landlords dealing with rent arrears, anti-social behaviour, or plans to sell or occupy a property.
The process shifts towards an evidence-based system, placing more weight on documentation and correct procedures. For professional landlords, this creates a clearer route to regain possession when needed.
More stable tenancies
The move to periodic tenancies removes fixed-term renewals, which could reduce tenant turnover. Landlords focused on steady income may see longer tenancies, fewer void periods, and lower re-letting costs.
It also cuts the administrative workload tied to renewals and renegotiations, allowing more focus on long-term performance. Over time, this could support stronger tenant relationships and more predictable income.
Improved notice periods
Under the changes, tenants will generally need to give two months’ notice before ending a tenancy. This gives landlords more time to arrange viewings, market properties, and secure new tenants.
For those managing multiple properties, the additional visibility can improve planning and support more consistent cashflow.
Faster dispute resolution
The introduction of a property ombudsman aims to streamline dispute resolution. This could reduce reliance on the courts, lowering both the time and cost involved in resolving issues.
Landlords would have a more accessible route to address disputes, including those linked to maintenance, tenancy disagreements, or service standards. A clearer process may also reduce the risk of prolonged disputes affecting income or tenant relationships.
A more professional rental market
Greater transparency, standardised compliance requirements, and a national landlord database are expected to raise standards across the sector. This may reduce the presence of non-compliant landlords and create more consistent operating conditions.
For professional landlords, stronger compliance frameworks reinforce the importance of accurate record-keeping and robust systems. Over time, improved transparency could also build greater trust across the market.
Roma Sharma, managing director of Rushbrook & Rathbone, said, “While the Renters’ Rights Act is understandably being viewed as a challenge by many landlords, it also represents a shift towards a more structured and professional rental market - in theory."
"What we are likely to see is a widening gap between those landlords who are well prepared, well managed and fully compliant, and those who are not."
"For professional landlords, greater clarity around possession, improved dispute resolution, and a more transparent regulatory framework can actually provide a more stable operating environment over the long term."
"At the same time, the increased complexity of the sector means that managing property is becoming far more operational and compliance-driven than it has been in the past."
"As a result, professional management is no longer simply about convenience; it is increasingly about ensuring that landlords remain compliant, protect their income, and are able to operate effectively within a rapidly evolving regulatory landscape.”
