The Harsh Reality of the Renters Rights Act for Tenants

Table of Contents

• Landlords Selling Properties: The Scale of the Problem
• Section 21 Eviction: What Happened Before the Deadline
• Rental Supply UK: Falling Stock and Rising Demand
• Rent Increases UK: Why Rents Will Keep Rising
• Section 8 and CCJs: What Happens to Tenants Who Cannot Pay
• Homelessness and the Unintended Consequences
• What Tenants and Investors Should Do Now
• Frequently Asked Questions

The Renters Rights Act was supposed to protect Renters Rights Act tenants from rogue landlords and unfair evictions. But the harsh reality is very different. With landlords selling properties at unprecedented rates, rental supply UK wide is shrinking while demand grows. Section 21 eviction notices flooded in before the 30th April deadline. Rent increases UK landlords are now making are set to become an annual fixture. And the unintended consequences of this legislation could see the most vulnerable renters pushed towards homelessness and councils pushed towards bankruptcy. In this post Simon Zutshi exposes the truth about who really loses out under the Renters Rights Act.

Landlords Selling Properties: The Scale of the Problem

Property consultancy Savills has released a report estimating that around 250,000 properties have come onto the market from landlords selling properties and exiting the private rental sector. That is a staggering number. And it is being driven largely by fear.

The media coverage around the Renters Rights Act has created an atmosphere of genuine panic among landlords. Concerns about rent repayment orders, the abolition of section 21 eviction, and the general direction of government policy towards the private rental sector have pushed many landlords to a breaking point. For many, the Renters Rights Act is simply the final straw.

Why Tenants Cannot Simply Buy These Properties

You might assume that with so many landlords selling properties, tenants would simply step in and buy them. But that is not what is happening. There are several reasons why:

• Many tenants do not want to own property. They choose to rent because of the flexibility and freedom it offers
• Many others who would love to buy simply cannot raise a deposit or qualify for a mortgage
• The current market uncertainty is keeping many potential buyers on the sidelines

The result is that properties are sitting on the market unsold rather than being absorbed by tenants becoming buyers. That means one less rental property available for every landlord who exits the market.

Key takeaway: Landlords selling properties does not automatically create more housing for tenants. It reduces rental supply UK wide and pushes more renters to compete for fewer homes.

Section 21 Eviction: What Happened Before the Deadline

The 30th April 2026 was the final date on which landlords could serve a section 21 eviction notice. Section 21 allowed landlords to regain possession of their property without giving a reason, commonly known as a no fault eviction. From 1st May, section 21 eviction ceased to exist.

The Rush to Issue Section 21 Notices

In the weeks leading up to the deadline, the volume of section 21 eviction notices issued was extraordinary. Paul Shamplina, founder of Landlord Action and one of the UK's leading experts on landlord and tenant law, reported that his organisation actually closed its doors to new section 21 eviction cases on 20th April, ten days before the deadline, because they were completely overwhelmed with demand.

Many of the tenants receiving those section 21 eviction notices were good, reliable tenants who had done nothing wrong. Their landlords were not issuing notices because of any fault on the tenant's part. They were issuing them because they had decided to sell the property and wanted vacant possession before the deadline passed.

What This Means for Renters Rights Act Tenants

Those tenants are now looking for new accommodation in a market where rental supply UK is already falling. They are competing with each other and with everyone else searching for a rental home in a shrinking pool of available properties. For Renters Rights Act tenants who received a section 21 eviction notice through no fault of their own, the timing could not be worse.

Key takeaway: The rush to issue section 21 eviction notices before the deadline has displaced thousands of good tenants into a market where rental supply UK is already tightening. This is the direct opposite of what the Renters Rights Act was intended to achieve.

Rental Supply UK: Falling Stock and Rising Demand

The fundamental economic problem created by the Renters Rights Act is straightforward. Rental supply UK wide is falling. Rental demand is rising. And when supply falls while demand rises, there is only one outcome.

Why Rental Supply UK Is Shrinking

Every landlord who exits the market reduces rental supply UK wide by one property. With Savills estimating 250,000 properties coming onto the sales market from landlords selling properties, the reduction in rental supply UK is significant and accelerating.

At the same time, the tenants who have been displaced by section 21 eviction notices are entering the rental market looking for new homes. That increases demand. The combination of falling rental supply UK and rising demand creates intense upward pressure on rents.

What Rent Caps Would Do to Rental Supply UK

The Labour government has considered introducing rent caps in response to rising rents. But the experience in Scotland shows exactly why rent caps make the rental supply UK problem worse, not better.

When rent caps apply to existing tenancies, landlords cannot raise rents while tenants are in place. So when a property becomes vacant, landlords immediately set the rent at the highest possible level before bringing in new tenants. They know they will not be able to raise it once a tenancy is in place. The result is higher starting rents and no improvement in rental supply UK.

Key takeaway: Falling rental supply UK combined with rising demand will push rents higher regardless of what the government does. Rent caps would make the situation worse by encouraging landlords to set higher rents from the outset.

Rent Increases UK: Why Rents Will Keep Rising

One of the less discussed consequences of the Renters Rights Act is its likely impact on how often landlords raise rents. The legislation limits rent increases UK landlords can make to once per year, in line with inflation or market rent. On the surface that sounds like a protection for tenants. In reality it is likely to backfire.

How Most Landlords Actually Managed Rents Before

The narrative that landlords constantly raise rents on tenants does not reflect the reality that most experienced investors know. The vast majority of landlords who have good tenants in their properties do not raise rents frequently. They value stability. They want long term tenants who look after their properties. Raising rents risks losing good tenants and creating voids.

Most landlords only raised rents UK wide when a tenancy ended and a new tenant moved in. That natural turnover point was when rents were adjusted to market levels. Between tenancies, many landlords kept rents stable for years.

Why the Renters Rights Act Will Change That

Now that rent increases UK landlords can make are capped at once per year, the incentive structure has completely changed. Landlords who previously left rents unchanged for two or three years will now raise rents every single year at the maximum allowable amount. They know that if they do not use their annual allowance, they lose it.

The legislation intended to protect Renters Rights Act tenants from arbitrary rent increases will likely result in more frequent and more consistent rent increases UK wide than tenants ever experienced before.

Key takeaway: By capping rent increases UK landlords can make to once per year, the Renters Rights Act has created an incentive for landlords to raise rents annually whether they need to or not. Tenants who previously enjoyed stable rents for years will now face regular annual increases.

Section 8 and CCJs: What Happens to Tenants Who Cannot Pay

With section 21 eviction gone, landlords must now use section 8 to regain possession of their properties. Section 8 requires landlords to prove a legal ground for eviction, most commonly rent arrears. Every section 8 case goes through the courts.

The CCJ Consequence for Renters Rights Act Tenants

When a landlord takes a tenant to court for rent arrears and wins, that judgment can be converted into a County Court Judgment, known as a CCJ. A CCJ has serious long term consequences for Renters Rights Act tenants:

• It makes it extremely difficult to obtain credit of any kind
• Car finance, credit cards, and personal loans become harder or impossible to obtain
• When credit is available, the cost is significantly higher due to the perceived risk
• Future landlords can see the CCJ and are likely to reject the application
• Getting back onto the property ladder becomes significantly harder

Tenants who fall into rent arrears under the new system face consequences that follow them for years. The removal of section 21 eviction was meant to give tenants more security. But for those who cannot pay their rent, the path through section 8 and into a CCJ is potentially more damaging than ever.

Key takeaway: Section 8 evictions result in court judgments that can become CCJs. Renters Rights Act tenants who fall into rent arrears face long term financial consequences that will affect their ability to borrow money and find future accommodation.

Homelessness and the Unintended Consequences of the Renters Rights Act

Perhaps the most serious unintended consequence of the Renters Rights Act is its potential impact on homelessness and council housing waiting lists.

Landlords Becoming More Selective

With rental supply UK falling and landlords taking on more risk under the new legislation, landlords are becoming significantly more selective about who they accept as tenants. Landlords cannot legally discriminate. But they can and will choose tenants based on financial reliability, employment status, and rental history.

That means the most vulnerable people in society, those with inconsistent incomes, poor credit histories, or complex personal circumstances, will find it increasingly difficult to secure private rental accommodation. They will be turned away by landlords who simply cannot afford the financial risk of a problem tenancy under the new rules.

The Cost to Councils and Taxpayers

Those people will not disappear. They will turn to councils for emergency accommodation and temporary housing. Councils are already under enormous financial pressure. The additional demand created by the Renters Rights Act pushing vulnerable people out of the private rental sector will increase costs for local authorities significantly.

Who pays for that? Taxpayers. Whether through council tax, income tax, or other forms of government funding, the financial consequences of the Renters Rights Act will ultimately be borne by the wider public.

Key takeaway: The Renters Rights Act is pushing the most vulnerable Renters Rights Act tenants out of the private rental sector and into council emergency accommodation. The cost of that falls on local authorities and ultimately on taxpayers.

What Tenants and Investors Should Do Now

The picture painted by the Renters Rights Act is genuinely concerning for tenants. But there are constructive steps both tenants and property investors can take in response to the current environment.

For Tenants: Consider Getting on the Property Ladder

If you are currently renting and the Renters Rights Act has made your situation less secure, now may be the time to seriously consider whether getting onto the property ladder is an option for you. With landlords selling properties in large numbers, there are more properties available to buy than there have been for some time.

You do not necessarily need a large deposit or a perfect financial history to get started. There are creative strategies available that can help first time buyers get onto the property ladder even in a challenging market. Simon Zutshi will be sharing specific strategies for getting onto the property ladder in upcoming videos on the Property Magic Podcast.

For Investors: This Is a Buying Opportunity

For property investors, the current environment represents a genuine opportunity. Landlords selling properties are motivated sellers. Many want out of the market quickly and are willing to accept below market value offers to secure a fast sale.

By picking up those properties and providing good quality accommodation to tenants, professional investors can fill the gap being left by landlords exiting the market. That is good for tenants, good for the local community, and good for the investor's portfolio.

• Look for landlords selling properties with tenants in situ for below market value deals
• Use tools like Property Filter to identify motivated sellers in your target area
• Understand the new rules under the Renters Rights Act fully before buying
• Focus on providing genuinely good quality accommodation to attract and retain reliable tenants
• Consider advanced strategies like HMO property investment where rental demand is strongest

Key takeaway: For investors, landlords selling properties in the current climate creates motivated seller opportunities. For tenants, exploring routes onto the property ladder has never been more important.

Frequently Asked Questions

How Does the Renters Rights Act Affect Tenants?

The Renters Rights Act was designed to protect Renters Rights Act tenants but its unintended consequences are significant. Landlords selling properties in large numbers are reducing rental supply UK wide. Section 21 eviction notices issued before the deadline have displaced thousands of good tenants. Rent increases UK landlords now make are likely to become annual fixtures. And vulnerable tenants are being screened out of the private rental sector entirely.

What Happened to Section 21 Eviction?

Section 21 eviction, also known as no fault eviction, was abolished on 1st May 2026 under the Renters Rights Act. Landlords can no longer use a section 21 eviction notice to regain possession of their property without providing a legal reason. In the weeks before the deadline, there was a massive surge in section 21 eviction notices being issued as landlords rushed to use the process before it was abolished.

Will the Renters Rights Act Cause Rent Increases UK Wide?

Yes. The combination of falling rental supply UK and rising demand will push rents higher. The legislation limits rent increases UK landlords can make to once per year, but this is likely to result in more frequent annual increases than tenants previously experienced. Landlords who previously kept rents stable for years now have an incentive to raise rents every year at the maximum allowable rate.

Why Are So Many Landlords Selling Properties?

Landlords selling properties in large numbers are driven by a combination of factors including the Renters Rights Act, section 24 landlord tax, rising mortgage costs, and increased regulatory burden. Savills estimates that around 250,000 properties have come onto the market from landlords exiting the private rental sector. Many are selling because they feel the risk and hassle of being a landlord has become too great under the current legislative environment.

What Is the Impact on Rental Supply UK?

Rental supply UK is falling as landlords exit the market. Each landlord selling properties removes at least one rental home from the available stock. At the same time, tenants displaced by section 21 eviction notices are entering the market looking for new homes, increasing demand. The result is a tightening rental market with higher rents and fewer options for Renters Rights Act tenants.

What Can Tenants Do About the Renters Rights Act?

If you are a Renters Rights Act tenant concerned about rising rents and falling rental supply UK, the most powerful thing you can do is explore routes onto the property ladder. With landlords selling properties in large numbers there are more buying opportunities available than there have been for years. Creative strategies exist to help even those without large deposits or perfect financial histories to get started on the path to home ownership.

Final Thoughts: The Harsh Reality of the Renters Rights Act for Tenants

The Renters Rights Act was introduced with good intentions. Raising standards in the private rental sector and giving Renters Rights Act tenants greater security are worthy goals. But the execution has created a cascade of unintended consequences that will ultimately hurt the very people it was designed to protect.

Landlords selling properties are reducing rental supply UK at exactly the moment when demand is rising. Section 21 eviction notices have displaced thousands of good tenants. Rent increases UK landlords now make are set to become an annual routine rather than an occasional adjustment. And the most vulnerable renters are being screened out of the private sector entirely.

The knock on effects of the Renters Rights Act will be felt for years. More homelessness. More pressure on councils. More cost to taxpayers. And a private rental sector that is smaller, more expensive, and less accessible than before.

For property investors, the current environment presents a real opportunity to step in, buy from landlords selling properties at motivated seller prices, and provide good quality accommodation to the tenants who need it most. That is how professional investors can make a positive difference while building long term wealth.

Read Property Magic by Simon Zutshi to discover how to find and secure the best property deals in the current market. And find your local Property Investors Network meeting to connect with investors who are actively navigating the Renters Rights Act and building successful portfolios right now.

Listen to the full discussion on the Property Magic Podcast. Subscribe to the channel and hit the bell icon so you never miss a new episode. And share your thoughts in the comments below. Do you think Renters Rights Act tenants will ultimately benefit or lose out from this legislation?