Renters’ Rights Act could strain London’s rental market – Propertymark

An industry body has warned the success of the Renters’ Rights Act in London will depend not only on legislative change but on court reforms and enforcement.

Speaking to the London Assembly Housing Committee, Propertymark warn London’s private rented sector operates at a “scale and complexity unlike anywhere else in England”.

The Renters’ Rights Act will come into force on 1 May 2026.

London’s rental market has distinct characteristics that require careful consideration

Nathan Emerson, CEO of Propertymark, said: “We support measures to improve standards and provide greater security for renters. However, London’s rental market has distinct characteristics that require careful consideration.

“Higher demand, significant student populations, longer court timelines and existing licensing schemes mean implementation in the capital will present specific challenges.

“Our focus is on working constructively with policymakers to ensure the Renters’ Rights Act is delivered in a way that protects tenants, supports responsible landlords and maintains much-needed rental supply.”

Propertymark’s evidence points out that London has some of the highest repossession claims in the country.

According to the Ministry of Justice, the London Borough of Barking and Dagenham recorded the highest number of private landlord repossession claims, at 878 per 100,000 households.

With the abolition of Section 21 under the Renters’ Rights Act, all possession cases will need to go through the courts, and landlords will only be able to seek possession by demonstrating specific grounds.

Propertymark says the Ministry of Justice must work with local courts in London to make sure there is sufficient capacity to manage the increase in cases.

Home to large international student population

Elsewhere, Propertymark points out London is home to more than 400,000 university students, including a large international student population.

Ground 4A in the Renters’ Rights Act, which is meant to let student landlords regain possession at the end of the academic year, only applies to HMOs with three or more tenants.

Propertymark warns this means smaller student properties will not be covered by the ground and could cause a student housing crisis in the capital.

Under the Renters’ Rights Act, landlords and agents will no longer be allowed to accept large amounts of rent in advance.

As previously reported by Property118, ARLA Propertymark regional executive for Cornwall, Sophie Lang, warned that banning rent in advance will have a huge impact on students, as many like to pay their rent in advance when their student loan comes in.

London’s rental market is complex and fast-moving

The industry body also says many London landlords are based overseas and rely on letting agents to manage their properties. Propertymark has called for early engagement and streamlined processes to support smooth registration and ongoing participation.

London also has extensive selective licensing schemes in place, with 28 of the capital’s 32 boroughs now operating schemes.

Propertymark recommends an education-led approach for compliant landlords and agents, alongside targeted enforcement against criminal landlords.

Propertymark is also urging the Greater London Authority and London Councils to develop a consistent compliance approach across boroughs, support professional qualifications and standards for letting agents, provide updated homelessness guidance following the removal of Section 21, and closely monitor private rented sector supply, court performance and rental trends as the reforms bed in.

Mr Emerson adds: “London’s rental market is complex and fast-moving. By recognising the capital’s specific pressures and planning accordingly, policymakers can help ensure the reforms deliver improved standards and security without unintended disruption.

“We stand ready to work with the London Assembly and boroughs to support a smooth and balanced transition.”