The Renters Rights Act may create a more structured and stable rental market that benefits professional operators.
That’s the view of Rushbrook & Rathbone which says that despite ongoing regulatory pressure, the average rental income per property has increased from £9,860 to £11,352, whilst average yields have edged up from 6.3% to 6.4%.
At the same time, the proportion of landlords reporting rental arrears has fallen from 29% to 27%, suggesting improving tenant stability.
However, the insight also highlights a shift in landlord behaviour, with portfolio sizes declining from an average of 7.3 to 6.6 properties, and a greater proportion of landlords selling rather than acquiring additional stock.
This reflects the growing cost and complexity of operating within the private rented sector, a trend that has been shaped in part by the introduction of the Renters’ Rights Act and the wider regulatory changes already being implemented, as well as those expected to come into force in the months ahead.
Rushbrook & Rathbone has also highlighted five ways in which these same changes could prove beneficial for professional landlords, particularly those operating well-managed and compliant portfolios.
Clearer grounds for possession
While Section 21 ‘no-fault’ evictions are set to be abolished, the Act introduces clearer and more structured possession grounds under Section 8. This provides greater legal certainty for landlords dealing with issues such as rent arrears, anti-social behaviour, or the need to sell or occupy the property.
In practice, this shifts the process from a more discretionary system to one that is increasingly evidence-based, rewarding landlords who maintain proper documentation and follow correct procedures. For professional operators, this creates a clearer and more defensible route to regaining possession when required.
–
More stable tenancies
The move to periodic tenancies removes the need for fixed-term renewals and may reduce unnecessary tenant turnover. For landlords focused on consistent income, this could result in longer tenancies, fewer void periods, and lower re-letting costs.
It also reduces administrative burden associated with renewals and renegotiations, allowing landlords to focus more on long-term asset performance rather than short-term tenancy cycles. Over time, this stability can support stronger tenant relationships and more predictable income streams.
–
Improved notice periods
Tenants will typically be required to provide two months’ notice when ending a tenancy, giving landlords greater visibility and more time to secure replacement tenants. This additional notice period allows for more structured planning around marketing, viewings and tenant onboarding, helping to minimise void periods.
For landlords managing multiple properties, this improved visibility can also support better portfolio-level planning and cashflow management.
–
Faster dispute resolution
The introduction of a property ombudsman is expected to streamline dispute resolution, reducing reliance on the courts and lowering both the time and cost associated with resolving issues. For landlords, this provides access to a more efficient and accessible route for resolving disputes, particularly in cases involving maintenance responsibilities, tenancy disagreements or service standards.
A more structured resolution process also reduces the risk of prolonged disputes impacting rental income or tenant relationships.
–
A more professional rental market
Greater transparency, standardised compliance requirements, and the introduction of a national landlord database are likely to raise standards across the sector. This may reduce the presence of non-compliant landlords and create a more level playing field for those operating professionally.
Over time, this increased transparency is likely to improve trust across the sector, benefiting landlords who already adhere to best practice. It also reinforces the importance of robust systems, accurate record-keeping and ongoing compliance, all of which are more easily achieved through professional management.
Please visit:
Our Sponsor
