The renters’ rights act came into force on Friday, amid warnings that private landlords have rushed to exit the rental market to avoid the new powers for tenants. The new law bans no-fault evictions and abolishes fixed-term contracts, with other elements including decent homes standards and a rental ombudsman still
Felix Armstrong
Friday 01 May 2026 12:01 am | Updated: Thursday 30 April 2026 12:49 pm
The renters’ rights act came into force on Friday, amid warnings that private landlords have rushed to exit the rental market to avoid the new powers for tenants.
The new law bans no-fault evictions and abolishes fixed-term contracts, with other elements including decent homes standards and a rental ombudsman still yet to be implemented.
Law firms had warned that the new tenant powers prompted a rush of landlords opting to exit the rental market for good, as an end to fixed-term contracts means landlords could be powerless to evict problem tenants.
Thackray Williams, a London-based law firm, said it received a wave of last-minute selling instructions from landlords in the run up to this week.
Landlords fear the new rules will make it harder and more expensive for them to regain possession of their property, the lawyers said.
#mc_embed_signup { background: #fff; clear: left; font: 14px Helvetica, Arial,sans-serif; width: 100%; max-width: 600px; margin: 20px 0; } #mc-embedded-subscribe-form { margin: 20px 0 !important; } .newsletter-form-flex { display: flex; gap: 0; align-items: center; margin-top: -10px; } .newsletter-form-flex input[type=”email”] { flex: 1; padding: 2px 10px; border: 1px solid rgb(18, 22, 23) !important; border-radius: 12px 0 0 12px !important; } .newsletter-form-flex input[type=”submit”] { padding: 4px 10px !important; margin: 0 !important; background-color: rgb(18, 22, 23) !important; color: rgb(255, 255, 255) !important; border: 1px solid rgb(18, 22, 23) !important; border-radius: 0 12px 12px 0 !important; } .newsletter-banner-content { margin-bottom: 15px; } .newsletter-banner-content h2 { margin: 0 0 10px 0; font-size: 18px; font-weight: 600; } .newsletter-banner-content p { margin: 0 0 10px 0; line-height: 1.5; } .newsletter-banner-content ul, .newsletter-banner-content ol { margin: 0 0 10px 20px; } .newsletter-banner-content a { color: #0073aa; text-decoration: none; } .newsletter-banner-content a:hover { text-decoration: underline; } .newsletter-banner-content img { max-width: 100%; height: auto; margin: 10px 0; } #mc_embed_signup #mce-success-response { color: #0356a5; display: none; margin: 0 0 10px; width: 100%; } #mc_embed_signup div#mce-responses { float: left; top: -1.4em; padding: 0; overflow: hidden; width: 100%; margin: 0; clear: both; }
The renters’ rights act will bring an end to fixed-term contracts, meaning all rental agreements will automatically become rolling from Friday, with tenants needing only to provide two months’ notice for moving out.
Renters’ rights could hit house prices
Mustafa Sidki, a contentious construction litigation partner at Thackray Williams, said: “This reduced flexibility is causing many landlords to rethink their investment strategies, especially as other factors mean they are facing reduced – and even negative cashflow – while also facing increased admin and responsibilities.”
The law firm warned the rush of new housing stock on the market could weaken house prices.
Claire Josef, a conveyancing partner at Thackray Williams, said: “We’re anticipating increased instructions for our conveyancing team as these landlords put their properties on the market as soon as they are able.
“[This] in turn could negatively impact property prices, particularly in areas that have traditionally had a strong rental sector.”
Demand for rental flats could fall
Property experts have warned the renters’ rights act could damage demand for flat developments, amid warnings that build-to-rent construction could grind to a halt.
Audit firm RSM said housing developments are becoming more favourable for developers, as landlords “retract from the market and shrink their portfolios” in response to increasing regulation.
Read more Renters’ rights act: what does it mean for landlords, rent hikes, tenants and no-fault evictions?
The National Residential Landlords Association dubbed the new laws the biggest shakeup to the private rental market in nearly 40 years.
Its chief executive, Ben Beadle, said he hopes the act will “root out for good the minority of rogue and criminal landlords who undermine the reputation of the responsible majority”.
Because the new laws will make it more difficult for rented properties to change hands, some property lawyers warn landlords will become more picky about the tenants they take on.
‘Good’ landlords may quit
This could mean that renters on lower incomes – and who therefore may be on paper less dependable for landlords – could miss out, according to Legal for Landlords.
Sim Sekhon, chief executive of the advisory service, said the act “aims to create a fairer, more secure rental market for tenants”.
“[But] as landlords lose certain safeguards, many will look to mitigate risk elsewhere, most commonly through stricter affordability criteria.”
One building society has raised the alarm that these reforms could cause “good” landlords to exit the market, leaving only exploitative landlords who hike rents for their tenants.
Jonathan Sinton, head of mortgage relations at Coventry Building Society, said: “The renters’ rights act brings meaningful protections for tenants – and all responsible landlords will welcome that. But it’s important the changes work for landlords too.”
The government says the act will offer better protections for 11m private tenants.
Steve Reed, secretary of state for housing, said: “Our historic act marks the biggest leap forward in renters’ rights in a generation.
“We are finally ending the injustice overseen by previous governments that has left millions living in fear of losing their homes.“
Read more Renters’ Rights Act: How are property investors and firms adapting their strategy?
Similarly tagged content: Sections Categories People & Organisations
