UK rental market shifts amid new Renters’ Rights Act regulations

The UK rental sector is undergoing significant shifts driven by the Renters’ Rights Act and changing landlord demographics. Reports indicate a decline in small landlords, with approximately 30,000 exiting the buy-to-let market in the year leading to April 2025 due to increased regulation, higher taxation, and rising finance costs.

In response to these regulatory changes, industry players are adapting. The Mortgage Works has expanded its lending criteria, increasing the maximum borrowing limit for landlords across the Nationwide Group to £10 million and raising the application age for first-time landlords to 75. Additionally, Vasek has launched a legal protection policy to help landlords manage the rising costs of tenancy disputes.

Technological and procedural adjustments are also emerging. Rightmove has introduced a new rent review function within its Tenancy Manager platform to assist letting agents in complying with new rules. Meanwhile, research from LRG suggests landlords are increasingly requesting guarantors to mitigate risks, as the Renters’ Rights Act limits the ability to request more than one month’s rent in advance.