Six Months Into England’s Rental Reforms, Landlords Adjust as Rents Rise

Six months after the Renters’ Rights Act took effect in England in May 2026, the rental market shows strain but no mass departure by landlords. Sales by landlords have increased and new landlord purchases have slowed, while rents have risen. The figures point to a market adjusting to new tenancy rules alongside years of tax and cost changes.

The Act ended no-fault evictions, gave tenants more flexibility to leave and strengthened their ability to challenge rent increases. Landlords were already dealing with limits on mortgage interest relief, higher stamp duty costs, right-to-rent checks, energy efficiency requirements and higher taxes. That combination has added pressure to the finances and day-to-day management of rental properties.

Landlord confidence is weak, but exits are uneven

Landlord sentiment has fallen sharply. The National Residential Landlords Association’s confidence index dropped 1.5 points to 28.8 in the third quarter of 2026, its lowest reading on record. In a separate survey of 1,654 landlords by Property118, two-thirds said they intended to sell properties or leave the rental market within three years.

Those intentions have not yet translated into a wholesale withdrawal. Hamptons’ analysis of Land Registry figures found that landlords accounted for 14.9% of property sales through mid-October 2026, compared with 13% across 2025. Landlords made 9.8% of purchases intended for rental over the same period, down from 11.5% in 2025.

Hamptons lead analyst David Fell said the Act arrived after nearly a decade of tax and rule changes that landlords had been adjusting to. Some are selling, he said, but many who wanted to leave have already done so. Smaller and older landlords’ properties are often being bought by larger, more experienced investors. Selling can also bring a capital gains tax bill, so owners need to weigh that cost alongside the pressures of staying in the market.

Rents are rising, with local shortages adding pressure

Rent increases have been a central concern: landlords may seek higher rents to cover added risks, while sales could reduce the number of homes available. Analysis of Office for National Statistics data by LegalforLandlords found average rents rose 1.7% between May and September 2026, after a 1.3% rise between January and May. The monthly average increase from implementation in May through September was 0.4%.

Across England, average rent reached £1,466 a month in September 2026, 4% above the level a year earlier. In the North East, it averaged £790, an annual increase of 5.3%. These national and regional figures don’t tell the whole story: the amount tenants face can vary considerably by location, property and available choice.

John D Wood & Co area director Emlyn Akoto-Dwemoh said some landlords are raising asking rents as they adjust to a market where tenants are less likely to offer above the advertised price. But renters remain selective, he added, making realistic pricing important when landlords want to secure a tenancy.

Short supply can push rents higher even without a change in tenancy rules. Buying agent Alasdhair Lochrane of Heaton & Partners described a shortage of quality homes in the prime rental market, particularly properties listed at around £3,500 per month or more. He said clients moving from Cheshire to rented accommodation in the south found little choice and high rents that were continuing to rise. In his view, reduced stock had already been lifting prices, and the Act has added to that pressure.

New tenant rights are changing landlord decisions

Tenants can now leave with two months’ notice, while landlords need a legitimate reason to end a tenancy. Landlords may also face lengthy court delays when seeking to evict someone who has stopped paying rent. Rent can be increased only once a year, and tenants have more scope to challenge increases they consider above market rates. Landlords can ask for no more than one month of rent in advance.

Early rent challenge figures offer a glimpse of how those rights are being used. Cyborg Finance reviewed 74 First-tier property tribunal decisions in England from September 2026. In 21 cases, or 28.4%, the landlord received the proposed increase in full. Another 29 cases, or 39.2%, ended in a partial increase. Twelve cases had no increase, and 12 ended with either a reduction or a rejection.

Lochrane said smaller landlords who feel exposed to greater risk may continue to sell, potentially adding pressure to the supply of rental homes. He also said tenants are using tools such as ChatGPT to draft correspondence about disputes. That may help renters understand and assert their rights, though Lochrane said it can also prolong possession proceedings when landlords are acting lawfully.

Landlords are responding by paying closer attention to applicants. Akoto-Dwemoh said thorough references and a clear understanding of a prospective tenant’s circumstances are becoming more important. He also described cases where tenants who initially expected to stay for the long term gave notice after only a few months, creating frustration and uncertainty for landlords. Goodlord’s analysis found that a third of landlords would rather leave a property empty while waiting for an applicant they consider lower risk.

Planning for the next stage

Further changes are expected in 2027. A new landlord register is due to launch, and taxes on rental income are set to rise by four percentage points from April 2027. Some landlords may explore short lets, which have a defined end date; others may choose fully managed services for help handling changing requirements.

For landlords who stay, ARLA Propertymark president Kim Lidbury recommends keeping records and processes current, communicating clearly with tenants, handling repairs promptly and reviewing whether each property remains financially viable. She also advises considering obligations under the new rules and basing decisions on realistic costs, local conditions and long-term aims. With rents, supply and landlord plans shifting at different speeds, regular reviews will matter more than assumptions drawn from early headlines.