Renters’ Rights Act creates challenges but disruption falls short of fears

Changes in notice periods have caused financial hurdles for tenants, as the ban on rent in advance has caused problems for students, claims one lettings agent.

Leaders claims that six months on from the Renters’ Rights Act, landlords and tenants are adjusting to the changes, although some challenges remain.

The news comes amid concerns that the Renters’ Rights Act has caused unintended consequences for the rental market.

Significant financial hurdle

Under the act, tenants can end an assured periodic tenancy at any time by giving at least two months’ written notice, potentially creating additional costs for those moving between rental properties.

Allison Thompson, chief lettings officer at Leaders, said: “When moving to a new property, tenants have always had to accept that they might pay double rent for a short time when their old tenancy and new one overlap. This is because landlords want to keep the gap between tenancies as short as possible and aren’t necessarily willing to wait for their new tenant’s notice period at their previous home to expire.

“When the notice period was one month, this overlap was often just one or two weeks’ rent. But now that tenants must give two months’ notice, some face an overlap of five or six weeks, which can be a significant financial hurdle.

“However, we’re finding that in most cases, landlords can still secure new tenants fairly quickly and can therefore release outgoing tenants from their obligation to pay rent for the full two-month notice. The key is communication, and if you’re working with a professional agent, they should be able to help with the transition for both parties.”

Ban on rent in advance

Ms Thompson also raised concerns over the ban on rent in advance has caused problems for students.

She explains: “The ban on rent in advance is a particular problem for international students, who used to be able to offer several months’ rent in advance if they couldn’t satisfy all the referencing criteria.

“And with the loss of section 21, many landlords are less willing to take a risk. However, we’d suggest this can be overcome by tenants offering guarantors, which has long been a common solution for students and other tenants who struggle to satisfy financial referencing checks.”

Rental market to recover

However, while some landlords are selling up, Leaders expects investment in the rental market to recover as the impact of the Renters’ Rights Act becomes clearer.

Ms Thompson cited data from Pegasus Insights showing that the proportion of landlords who sold rental properties in the past year was lower than the number who had previously intended to do so. In the 12 months to June 2026, 22% of landlords sold rental properties, compared with 38% who had expressed an intention to sell.

She said: “Although some landlords have recently sold their properties, many had reached the end of their planned investment period. For instance, those who started in buy-to-let in the late 1990s and early 2000s are now around retirement age and always planned to sell.

“Although fewer landlords are buying, strong tenant demand and competitive yields mean rental purchases are still happening. As the Renters’ Rights Act rules settle in over time and initial concerns subside, we expect investment in the market to rise again.”

Fears over pet ownership

Despite fears surrounding the new rules on pet ownership in rental properties, which give tenants the right to request permission to keep a pet and require landlords not to unreasonably refuse, Leaders says the changes have not caused as much disruption as anticipated.

However, Ms Thompson said there had been some misunderstandings among tenants about how the rules work.

She explains: “Some tenants believe they are automatically allowed to have a pet and don’t realise they must seek written permission from their landlord, or that the landlord can refuse where they have a valid objection. As a result, tenants may only disclose a pet after signing their tenancy agreement, or a landlord might discover a pet during a property inspection. That’s why it is important to ask the right questions and fully vet a tenant before agreeing to a tenancy.

“Overall, while there have naturally been some teething issues with the implementation, there certainly hasn’t been as much disruption as some feared. With every major legal change, there is always an initial transition period while people get used to the new rules, then the market settles.”