The Case for Landlords to Support Stronger Rights for Renters

Stronger protections for renters are often framed as a challenge for landlords, but the evidence increasingly suggests the opposite. A more balanced, transparent and predictable rental system benefits responsible landlords just as much as tenants. With the Renters’ Rights Act reshaping the sector from 2026, this is the ideal moment to examine why improved renter rights should be welcomed rather than resisted.

A More Stable Market Reduces Risk

The UK rental market has experienced volatility, but recent data shows signs of stabilisation. By mid‑2025, the average UK gross rental yield reached 6.3%, ranging from 5.7% in London to 8.1% in the North East, with all English regions recording modest annual increases. This reinforces the continued appeal of buy‑to‑let for income‑focused investors.

Tenant demand has softened by around 20% year‑on‑year and is now at its lowest level in six years outside London. A 78% fall in net migration over two years and a 20% rise in first‑time buyer mortgage volumes have shifted the landscape. As more renters transition into homeownership, additional rental stock returns to the market, easing pressure on supply.

A more balanced market reduces the risk of sudden price swings, arrears and void periods. Improved rights for renters—such as limits on rent increases and clearer tenancy structures—support this stability by reducing churn and creating a more predictable environment for landlords.

Longer Tenancies Mean Lower Costs

A major change under the Renters’ Rights Act is the end of fixed‑term assured shorthold tenancies. All new tenancies will become periodic, giving renters greater security and reducing turnover.

For landlords, this brings clear advantages:

• Lower void periods as secure tenants stay longer
• Reduced marketing and onboarding costs
• More predictable rental income and easier long‑term planning

Renters consistently value stability. When tenants feel protected, they treat the property as a long‑term home, typically resulting in better upkeep and fewer disputes.

Clearer Rules Reduce Disputes

The Act introduces a more transparent framework for both parties. Key measures include:

• Abolition of Section 21 “no‑fault” evictions
• A single periodic tenancy structure
• Stronger, fairer possession grounds
• Limits on rent increases to once per year
• A ban on rental bidding above the advertised price
• Tighter rules on rent in advance and pet requests

These reforms reduce ambiguity—one of the biggest sources of conflict. The government has emphasised that landlords will retain fair grounds to regain possession when needed, including moving in, selling, or addressing arrears and anti‑social behaviour. A clearer system means fewer tribunal cases, fewer misunderstandings and a more professionalised sector.

Improved Rights Do Not Reduce Yields

Some landlords worry that limiting rent increases or banning bidding wars will reduce profitability. However, yields remained strong in 2025 despite softer rent growth, supported by underlying demand and limited supply. Rent growth is forecast to stabilise at around 2.5% in 2026, a sustainable level aligned with wage growth.

Moderate, predictable rent increases reduce arrears, turnover and operational costs. A balanced approach protects both income and tenant affordability.

Allowing Pets Can Strengthen Demand

Under the new rules, landlords must consider pet requests reasonably. This presents a commercial opportunity, as pet‑friendly homes typically:

• Attract more applicants
• Encourage longer tenancies
• Face less competition from other landlords

With 11 million private renters set to benefit from new protections, demand for pet‑friendly homes is likely to rise.

Compliance Protects Income and Reputation

From 2026, councils will have stronger enforcement powers. Compliant landlords benefit from:

• Fewer fines
• Better tenant relationships
• Higher‑quality applicants
• Reduced disputes
• Stronger long‑term returns

Raising standards ensures responsible landlords are no longer undercut by rogue operators.

A Fairer System Encourages Better Tenants

Tenants who feel respected and protected are more likely to pay rent on time, report issues promptly, maintain the property and renew their tenancy. The reforms also crack down on poor‑quality landlords, improving the sector’s reputation.

Predictability Supports Long‑Term Planning

Limiting rent increases to once per year creates a more predictable financial environment, helping landlords plan maintenance, budget for mortgages and forecast returns. With wage growth expected to ease, the new rules simply formalise existing market trends.

Proactive Landlords Will Outperform

Landlords who prepare early—updating agreements, reviewing rent‑increase processes, ensuring compliance and working with informed agents—will be best placed to thrive.

A More Sustainable Rental Market

Improved rights for renters are not about penalising landlords. They create a fair, transparent and sustainable rental system that reduces volatility, encourages professionalism and supports long‑term investment. Landlords who evolve with the market will benefit the most.

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