A great view of the emerging landscape..
Article written by Graham Norwood The Renters Rights Act may create a more structured and stable rental market that benefits professional operators. Thatās the view of Rushbrook & Rathbone which says that despite ongoing regulatory pressure, the average rental income per property has increased from Ā£9,860 to Ā£11,352, whilst average yields have edged up from 6.3% to 6.4%. At the same time, the proportion of landlords reporting rental arrears has fallen from 29% to 27%, suggesting improving tenant stability. However, the insight also highlights a shift in landlord behaviour, with portfolio sizes declining from an average of 7.3 to 6.6 properties, and a greater proportion of landlords selling rather than acquiring additional stock. This reflects the growing cost and complexity of operating within the private rented sector, a trend that has been shaped in part by the introduction of the Rentersā Rights Act and the wider regulatory changes already being implemented, as well as those expected to come into force in the months ahead. Rushbrook & Rathbone has also highlighted five ways in which these same changes could prove beneficial for professional landlords, particularly those operating well-managed and compliant portfolios. Clearer grounds for possession While Section 21 āno-faultā evictions are set to be abolished, the Act introduces clearer and more structured possession grounds under Section 8. This provides greater legal certainty for landlords dealing with issues such as rent arrears, anti-social behaviour, or the need to sell or occupy the property. In practice, this shifts the process from a more discretionary system to one that is increasingly evidence-based, rewarding landlords who maintain proper documentation and follow correct procedures. For professional operators, this creates a clearer and more defensible route to regaining possession when required. ā More stable tenancies The move to periodic tenancies removes the need for fixed-term renewals and may reduce unnecessary tenant turnover. For landlords focused on consistent income, this could result in longer tenancies, fewer void periods, and lower re-letting costs.