The biggest overhaul of the lettings market in 40 years is underway as the Tenants’ Rights Act (RRA) came into effect at the start of the month, creating both risks and opportunities for buyers.
Among its measures, the law brings a ban on no-fault evictions, restrictions on rent increases, universal tenancies, an end to bidding wars and more lawsuits against landlords.
Many participants predicted that landlords would leave the sector in droves as a result of the changes.
The new law has created an income opportunity for consumers and the opportunity for more introductory deals
One such forecast comes from Pepper Money, based on a survey of landlords, which suggests that the number of homes available for rent will contract by 220,000 following the changes this year.
Some believe that the impact will be noticeable, but not much.
The chief executive of Connect for Intermediaries, Liz Syms, says: “I don’t think we will see the massive exodus that some have predicted, but we are certainly seeing landlords reassessing their positions carefully.
“Another set of rules at a time when homeowners are already facing higher financing costs, tax changes and increased compliance requirements.
“For small or more ‘accidental’ landlords, that may be the ultimate goal of selling, but professional landlords are more likely to adapt, review benefits, refinance and focus on existing properties.”
Advisors, too, should consider how to adjust their approach to better position themselves for the new buying era, Syms said.
We saw a huge explosion in demand for rent protection as soon as the bill cleared the final stages
“For consumers, the changes create a real opportunity,” he said. “Landlord customers will need more than just product recommendations; they will need strategic support.”
Buyers can look to expand the services they offer to clients by offering portfolio reviews; offering advice on renovation finance, multi-family housing, multi-unit blocks, bridges, commercial investment, protection and landlord insurance, adds Syms.
The knowledge gap between landlords grappling with the new rules presents an opportunity for retailers to play a wider educational role, according to research specialist Pegasus Insight.
It found that only one in five landlords surveyed in March felt they were fully aware of all the details of the RRA.
Most knew little, which could leave them at risk of non-compliance and risking significant fines.
For small or many ‘accidental’ landlords, this could be the final push to sell
Pegasus Insight managing director Mark Long says: “Sellers can rely on published resources and guidelines, from the National Residential Landlords Association, for example, to provide clients with practical, digestible guidance.
“It is also possible to use a paid webinar for customers, to turn the administrative complexity into a direct income stream.”
Long believes that sellers are also well placed to build a curated network of trusted professionals for their homeowner clients, and earn referrals.
“Legal changes, particularly the abolition of Section 21, new grounds for property ownership and a strengthened framework for tenants’ rights will drive the need for specialist legal advice, and brokers can refer clients to trusted lawyers who will add tangible value beyond the mortgage transaction,” he said.
“Compliance-focused technology tools, which help landlords manage occupancy documents, rent reviews and maintenance obligations within the new regulatory framework, represent another growing category of referrals,” adds Long.
Boon Brokers managing director Gerard Boon agrees.
There is an opportunity for brokers to expand their service offerings in a way that feels realistic rather than forced
“The new law has created an opportunity for income for buyers and the opportunity for many agreements to introduce, and a list of experts who can support the owners of the houses through the transition,” he said.
“The quality of advice is now more important than ever as the consequences for landlords pursuing court claims can be huge.”
Boon says he’s already seeing a shift in homeowners’ customers to new areas, where their lack of experience can mean their realtor’s support is more important.
“They are moving away from low-yield areas with long-term tenants such as family homes, and investing in short-term accommodation such as student or holiday homes,” he said.
The need for rental insurance is another marketing opportunity for consultants. Goodlord reported that the number rose by 41% in the last four months of last year, shortly after the bill received royal assent, as landlords looked for ways to reduce their risk.
Buyers can rely on published resources and guidance to provide consumers with easy-to-digest, practical guidelines
This creates an opportunity for sellers to include rental insurance consistently in their advice program.
Goodlord insurance managing director Oli Sherlock says: “The passing of this bill into law has really focused minds across the industry.
“There have been so many false starts over the years, it took royal approval for many agents to really tighten up their preparations.”
Sherlock adds: “We saw a huge explosion in demand for rent protection as soon as the bill got through the final stages; it was like a big alarm bell going off across the market.”
Landbay sales and distribution director Rob Stanton also believes there are advantages to advisers who are willing to adapt.
“There is an opportunity for brokers to increase the provision of services in a meaningful way rather than being forced,” he said.
Professional landlords are more likely to adapt, review benefits, restructure mortgages and focus on existing properties.
“That could include directing landlords to reliable compliance services, helping them understand the requirements of new documents like tenant information sheets, or simply building compliance instructions into regular portfolio reviews.”
As regulations continue, some homeowners will want to restructure their portfolios or change their investment strategy, and brokers will be in a better position to support this, Stanton said.
“That could mean more refinance work, changes in ownership structures or switching to different types of buildings.”
This article appeared in the May 2026 issue of Mortgage Strategy.
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