The impact of the Renters’ Rights Act

Views on the Renters’ Rights Act suggest a period of adjustment rather than disruption. Neil West of Hoffen West anticipates that “For some, the loss of Section 21 and increased regulatory burden will drive exit decisions, which will tighten supply and most likely lead to stronger yields for remaining investors.” Neil expands to suggest that this kind of market “presents an opportunity to the braver investor to either enter, or strengthen their exposure in the market, as long as their focus remains on long term investment.”

James Brock sees a similar pattern locally. “There’s no doubt the Renters’ Rights Bill has made some landlords pause, particularly smaller portfolio landlords, but locally it hasn’t brought the market to a standstill,” he says.  “In Worthing and the surrounding villages, many landlords already operate professionally and welcome clearer rules of the road. In the short term, we may see some rental stock come to market for sale but longer term I think it will lead to a healthier, more stable rental sector, which is good for tenants and responsible landlords alike.”

Peter Maskell expects “continued consolidation” with smaller landlords leaving , “particularly where properties require investment to meet new standards,” and professional operators remaining active, keeping rental supply tight.  

Adam Powell of Charnock Bates reinforces this view, noting that “professional, experienced landlords are already accustomed to operating within a highly regulated environment” and to expect that “rental conditions will remain driven by fundamental supply and demand.”