0:01 AM, 24th December 2025, About 2 months ago
Text Size
Categories:
The private rented sector is heading into a turbulent 2026, with the Renters’ Rights Act set to drive sweeping operational change across the market, according to Allison Thompson at Leaders.
The firm’s national lettings managing director warns that timing will matter as much as intent once the next phase begins.
She says: “From an operational perspective, the next phase will be critical.
“The government is expected to publish an information sheet in March, when landlords and agents will have 30 days to issue this to every tenant.”
That will need to be done alongside amending and reissuing tenancy agreements, and systems updated to reflect new notices and processes.
The scale of adjustment, she warned, is unlike anything seen in years, adding: “While it raises the bar for professionalism and improves standards for tenants, it also represents the biggest operational shift landlords and agents have faced in a generation.
“Long-standing tenancy practices are changing, and the scale of training and systems work required should not be underestimated.
“The penalty regime is now clear and carries real weight: serious breaches, such as unlawful eviction or harassment, can attract civil penalties of up to £35,000, and procedural failures involving tenancy notices and prescribed processes can also lead to substantial fines.”
Ms Thompson says that LRG will move towards being an advisory-led agent, helping landlords with compliance and risk management.
She continued: “Rents are still expected to rise, but at a much more moderate pace, around 3% nationally and lower in London, and landlords will need to adjust expectations after several years of exceptional growth.
“Affordability pressures remain very real for tenants, and referencing continues to be challenging in many cases.
“While rents are still rising, the impact of the new rent increase framework is unlikely to be felt until later in the year.”
Landlord behaviour will continue to change, and some smaller landlords will reassess their position in the PRS.
Larger portfolio and professional landlords, however, will increasingly view the current environment as an opportunity which reshape the PRS profile.
Despite the upheaval under the Act, Ms Thompson also warns: “As the administrative burden increases, our expectation is that the need for professional managing agents will only strengthen.
“There are still unanswered questions, particularly regarding EPC requirements, which have been repeatedly delayed.
“Clarity here is essential, as it will play a major role in determining whether investment in the sector continues.
“Overall, 2026 will be about execution. Those who prepare early, invest in the right advice and take a proactive approach will be best placed to navigate what comes next.”
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
