Tenants in UK are facing a changing private rental market as new research suggests some landlords are reducing or leaving their portfolios while room rents continue to rise.
Data from SpareRoom, reported following the introduction of the Renters’ Rights Act, indicates that 78% of surveyed landlords have no confidence in the rental market since the reforms came into force.
The research also suggests that a significant proportion of landlords are considering reducing their presence in the sector, raising questions about the future supply of privately rented homes.
Landlords consider leaving the rental market
According to the SpareRoom research, 27% of landlords surveyed said they were leaving the rental market.
The proportion was considerably higher among landlords with a single property, reaching 44%.
A further 36% of landlords said they were reducing the size of their portfolios. Among larger landlords, that figure increased to 53%.
Fewer than 4% of respondents said they were expanding their portfolios.
The figures represent the responses and intentions of landlords surveyed by SpareRoom rather than a measurement of all landlords across England.
Room rents reach record levels
The research comes as SpareRoom reports that room rents have reached record highs following the introduction of the Renters’ Rights Act, while the number of available rooms has fallen.
The combination of rising asking rents and reduced supply could put additional pressure on people looking for rooms, particularly in areas where demand for shared accommodation is already high.
Matt Hutchinson, director of SpareRoom, said landlords were continuing to react to the changes brought by the new legislation.
He argued that while some of the reforms have strengthened protections for tenants, landlords leaving or reducing their portfolios could create further pressure on rental supply.
What changed under the Renters’ Rights Act?
The Renters’ Rights Act introduced major changes to England’s private rented sector from 1 May 2026.
Section 21 no-fault evictions were abolished, while most assured tenancies moved to a periodic system rather than fixed-term arrangements.
The reforms also introduced new rules covering rent increases, rental bidding and payments of rent in advance.
The government says the changes are intended to provide tenants with greater security while retaining legal routes for landlords to recover properties in specified circumstances.
New restrictions on rent in advance
One of the changes highlighted by the research concerns the amount of rent prospective tenants can be asked to pay before moving into a property.
Under the new rules, a landlord or letting agent cannot ask for, encourage or accept rent before the tenancy agreement has been signed.
After the agreement has been signed, a landlord can generally require up to one month’s rent in advance for a monthly tenancy during the period before the tenancy begins.
The research reported by Property118 says demand for rent guarantors has also increased by 50% since the Renters’ Rights Act came into force.
Why landlords are reducing their portfolios
The research suggests that landlords are reassessing whether remaining in the private rental market is worthwhile under the new rules.
For some landlords, the decision may involve selling properties. Others may reduce the number of homes they own rather than leave the sector completely.
The consequences could vary significantly between different parts of England.
Where rental demand remains strong but the supply of available properties falls, tenants may face greater competition for homes. However, the survey figures alone cannot establish how much of any future change in rents or supply will be caused by the Renters’ Rights Act.
Other factors, including mortgage costs, property prices, maintenance expenses and local demand, can also influence landlords’ decisions and rents.
Tenants still gain new protections
The changes have also introduced protections for renters.
The abolition of Section 21 means landlords can no longer use the previous no-fault eviction route for applicable tenancies. Tenants also have protections against certain forms of rental bidding, and new rules limit how rent increases can be made.
The government has also introduced restrictions on requiring large amounts of rent in advance, which can be particularly relevant to tenants who struggle to provide substantial upfront payments.
These reforms are therefore creating both new rights for tenants and new requirements for landlords.
Rental supply will be closely watched
The SpareRoom findings provide an early indication of how some landlords say they are responding to the new rental framework.
The most significant question for the wider market is whether reported intentions to sell or reduce portfolios translate into a sustained reduction in rental supply.
If landlords continue to leave or reduce their holdings while demand for rented accommodation remains high, competition for available properties could increase.
At the same time, the impact of the Renters’ Rights Act cannot be separated from wider pressures affecting England’s rental market.
Further rental and housing-market data will be needed to determine whether the changes reported by SpareRoom develop into longer-term shifts in rents, supply and landlord participation.
Source: SpareRoom research, GOV.UK guidance on the Renters’ Rights Act.
