Government admits no impact assessment of Renters’ Rights Act on supply
The government admits it has not carried out an impact assessment on how the abolition of fixed-term tenancies will affect rental supply.
In a written question, Liberal Democrat MP Dr Roz Savage asked what assessment had been made of removing fixed-term tenancies under the Renters’ Rights Act, including the impact on certainty for landlords seeking to sell or recover possession and the potential effect on rental supply.
However, Housing Minister Matthew Pennycook claimed no such assessment has been carried out.
Abolition of fixed-term tenancies will cause chaos
Mr Pennycook pointed to the Renters’ Rights Act impact assessment, which claims the abolition of fixed-term tenancies and replacing them with periodic tenancies will “result in fewer voluntary household moves as tenants will no longer need to plan to move at the end of a fixed term period.”
The assessment looks at the English Housing Survey, which says approximately 6.3% of tenants who moved in the previous 12 months listed the end of the fixed term as the sole reason for moving.
The assessment claims: “These are voluntary moves from tenants that are solely due to the existence of fixed terms, this may be in situations where tenants are unable to commit to another term of at least 12 months.”
However, as previously reported by Property118, many industry experts have warned the abolition of fixed-term tenancies will cause chaos, particularly for the student rental market.
ARLA Propertymark regional executive for Cornwall, Sophie Lang, told Property118: “The student rental market runs in a very set cycle. We know when the term times are and when the year ends. It was very easy to have a fixed-term tenancy, which gave everyone peace of mind that they had their housing sorted.
“Removing fixed-term tenancies will cause uncertainty for landlords and tenants because it means that fixed-term tenancies are no longer there as a protection.”
A survey by agency software firm Alto reveals more than a third (34%) of agents predict the end of fixed-term contracts could devastate the student letting system.
Landlords selling
Dr Savage also asked whether the Renters’ Rights Act could affect the frequency of tenant displacement caused by landlords selling properties, and trends in repeated forced moves for compliant tenants.
Mr Pennycook again confirmed that no assessment had been carried out on this.
The Renters’ Rights Act impact assessment claims the reforms are expected to result in only a small number of landlords exiting the market.
The assessment said: “There is a risk that costs from the legislation may result in some landlords leaving the sector. This is difficult to estimate precisely, though we would expect it to be substantially mitigated by the additional cost per rented property being a very small fraction of average annual rent and asset value.
“The available evidence to date does not suggest that similar reforms to abolish section 21 in Scotland have negatively impacted supply, nor changes introduced by the 2019 Tenant Fees Act, despite concerns they would.”
However, a study by the Scottish Association of Landlords shows a reduction of 22,000 rental properties in Scotland in just one year due to government policies and anti-landlord rhetoric.
A survey by the National Residential Landlords Association (NRLA) found that 41% of landlords plan to sell properties within the next 12 months, compared to only 6% who intend to buy.
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Member Since January 2024 - Comments: 341
10:34 AM, 27th February 2026, About 1 month ago
As a straw poll……..I am selling 2 now and 2 when the mortgages come to the end of their fixed terms.
Sole reason – it is too risky being a landlord and I can make a better, lower risk post tax returns elsewhere.
Property is an easy target for any government. Unlike other investments it cannot be bought and sold quickly and efficiently. It is therefore like a deer in headlights whenever a government wants to raise more tax or impose more regulation.
Member Since August 2021 - Comments: 307 - Articles: 1
11:27 AM, 27th February 2026, About 1 month ago
Of course the government didn’t trouble their little heads considering the impact.
The RRA will not be viewed positively once the true impact of dogma over pragmatic change starts to be felt two months from now.
I note the comment above suggesting that some form of compensation was offered to long term tenants who had to be served notice [under S21]. This was the basis of the key proposal by iHowz when the Tories first proposed abolition of S21. iHowz suggesteda sliding scale of notice as well as up to 2 month’s rent free for good tenants being asked to move, based on the lenth of their tenure.
No doubt, this government will be claiming that court numbers are falling (as S21 can no longer be served) only for the numbers to shhot up both for the courts and the FTT as they have to make sense of the rushed RRA and it’s lack of detail.
With their 1.5m new homes target looking more threadbare by the week, housing delivery is falling, landlords are seeking better, safer, tax efficient reurns on their invertments. At the same time the government’s blind faith in BTR being their silver bullet were shattered this week as John lewis announced that they will not be proceeding with their plans.
Member Since January 2026 - Comments: 2
2:06 PM, 27th February 2026, About 1 month ago
Extraordinary incompetence yet again from this administration.
I’ve already sold up and will never return to being a landlord in this country.
Good luck to all still in the game
Member Since December 2023 - Comments: 1575
2:06 PM, 27th February 2026, About 1 month ago
Pennycook said “… as tenants will no longer need to plan to move at the end of a fixed term period.”
Can somebody let him know that tenants NEVER needed to plan to move at the end of a fixed term period?
Fixed term tenancies automatically became periodic tenancies when the fixed term ended.
Fixed terms gave tenants security of tenure and gave landlords the opportunity to recover the costs of preparing the property and finding tenants.
Are there any Labour MPs that understand how legislation works?
Member Since January 2017 - Comments: 110
2:42 PM, 27th February 2026, About 1 month ago
The govenment are keen that landlords cant get rid of nuisance tenants because councils don’t have the properties to put them in and in some cases they are legally obliged to house them. So if that means hotels, etc., that’s potentially a cost they can ill afford.
Personally I have already sold 2 properties recently on the back of the recent changes, to lesson the risk. One, I gave the tenants 7 months notice as I had experienced problems with them paying and causing issues with neigbours. The other became vacant and I decided to sell rather than re-let which was not in my plans originally.
I will hopefully sell another this year and have given the tenants notice and maybe another next year. All because of governments intervention in a PRS which on the whole works well.
Target those that don’t follow the rules & regs, not a blanket hit on all landlords. So stupid. But that’s what you get from those who don’t know what they’re doing!
Member Since March 2020 - Comments: 184
2:56 PM, 27th February 2026, About 1 month ago
Reply to the comment left by Cider Drinker at 27/02/2026 – 14:06
Indeed. Where is the NRLA to publicly announce our stupid Housing Minister’s lack of knowledge? At the moment of course after the first 4 months into a standard STA tenants can give 2 months notice. In fact I believe that after the contract ends they can leave giving no notice where as the landlord has to give two months, along with two months notice of a rental increase. None of my tenants did that as the flats were good and the rents weren’t too high. I didn’t raise rents from when I started in 2015 until after Covid. Then it all went t*ts up and I had no choice.
I’ve sold 5 of my 8 rental flats and have evicted my final tenants in readiness for selling the others. I will never again be a buy to let landlord, although two of the final flats are EPC C. No investors are buying however.
Member Since June 2021 - Comments: 80
5:04 PM, 27th February 2026, About 1 month ago
Scenario: student takes flat then quits in June. Flat potentially empty until September. Landlord decides to rent for summer realises hegetting alotmore £££ and decides to keep renting as short let’s or Airbnb. There are 83000 airbnb flats in london – removing supply for normal rentals. Has the Govt done as assessment of this?
Member Since December 2023 - Comments: 1575
5:59 PM, 27th February 2026, About 1 month ago
Reply to the comment left by David Judd at 27/02/2026 – 17:04
Student landlords (excluding PBSA) will need to factor in the risk of not getting rent for 12 months.
Some students may have stayed in a University despite not enjoying the course because of their rental agreement tying them down. I expect to see more students quit their course.
Member Since April 2018 - Comments: 365
6:27 PM, 27th February 2026, About 1 month ago
Lib Dem have the same view about landlord’s as Labour so are they are just trying to score points.
Member Since March 2024 - Comments: 27
6:54 PM, 27th February 2026, About 1 month ago
Last week I gave 7 of my tenants notice to leave. This is the first phase of my plan to have less stress in my life.. I’ve had enough of being kicked by the government.
There are better investments to put my money into.
By the end of the year I hope to have disposed of all units in my portfolio
Good luck to all tenants, because they are the ones who will really suffer