The Renters’ Rights Act: could a changing market create opportunities for professional landlords?
When the Renters’ Rights Act came into force on 1 May 2026, much of the conversation understandably focused on the additional responsibilities facing landlords. Section 21 was abolished, most assured tenancies became periodic and the processes around rent increases, records and tenancy management became more structured.
For some landlords, particularly those with one or two properties acquired almost by accident, this may have added to the feeling that it is time to leave the market. That could include somebody who retained a former home or inherited a property without setting out to build a property business.
However, there is another side to the story.
The Act has not removed the need for good-quality rented homes. As some owners decide to sell, opportunities may emerge for experienced landlords, property companies and business owners prepared to approach property as a properly planned enterprise rather than a passive sideline.
A market already experiencing change
It would be misleading to suggest that every landlord selling a property is doing so because of the Renters’ Rights Act. Borrowing costs, taxation, maintenance and proposed energy-efficiency requirements have all influenced the market.
Even before implementation, the Government’s 2024 English Private Landlord Survey found that 31% of landlords surveyed planned to reduce their portfolio over the following two years. This included 16% who intended to sell all their properties, while only 7% planned to increase.
This does not mean there will be a flood of bargains. It does suggest that some suitable rental properties may come to market because their owners have made a strategic decision to exit, rather than because the property itself is unsuitable as an investment.
For a well-prepared buyer, that distinction matters.
Where could the opportunity lie?
An existing rental property may already have a tenant, a documented rental history and a clear record of costs. This can help when assessing its performance and discussing finance, although buying with a tenant in place requires careful legal and financial due diligence.
There may also be opportunities to acquire properties requiring improvement. A home with an outdated EPC, maintenance issues or poor presentation may be unattractive to somebody considering leaving the market. With appropriate purchase and refurbishment funding, another landlord may be able to improve its long-term lettability while creating a better-quality home for tenants. The objective should not simply be to collect more properties. It should be to build a stronger and more resilient portfolio.
A lower asking price does not automatically make something a good investment. Mortgage payments, tax, insurance, repairs, agent fees, licensing, void periods and future improvements all sit between the headline rental income and the actual return.
Preparation is becoming increasingly important
The changing market may favour landlords who understand their true net yield, keep reliable records, plan rent reviews and hold appropriate cash reserves. This does not only apply to large property companies. Somebody with two properties can operate extremely professionally, while a much larger portfolio can still be poorly managed.
Any acquisition should also be considered alongside the existing portfolio. Questions include how much equity is tied up, when current fixed rates expire, whether the portfolio still meets lender stress tests and what refurbishment expenditure may be required.
This may be relevant even if you do not call yourself a landlord. Many business owners have a former home, inherited property or small portfolio sitting quietly alongside their main business. Decisions about refinancing, investing or selling those properties can affect personal cash flow and wider business plans.
The Renters’ Rights Act has raised the standard expected of landlords. For those prepared to operate professionally, the resulting market movement could create opportunities to acquire, improve or restructure a portfolio.
Our property finance specialist, Debbie Labourne, would be very happy to have an initial conversation with you if this article raises questions about an existing property, a potential acquisition or the financing of your wider portfolio.
FundingRound is an independent commercial finance brokerage. Finance is subject to status, lender criteria and affordability. Where appropriate, tax and legal advice should be obtained from qualified advisers.