According to a Pepper Money study, nearly a quarter of a million rental properties will disappear from the private rental sector in England by the end of this year, with Pepper Money research indicating 220,000 fewer homes to rent by the end of 2026. 1 percent, or £48 billion, in 2025—the biggest drop this century. 47 trillion, while owner occupied homes grew in value over the same period, suggesting their share of the housing stock is on the rise while landlords' share has diminished.
About 5 percent of rented homes are set to disappear, according to multiple reports. Increasing numbers of landlords are evicting tenants at the last minute before the law changes to outlaw the practice next month, charities report. No-fault evictions made up one in five of the reports received from members in October, rising to nearly one in three by January, according to Acorn.
The Renters' Rights Act will come into effect on 1 May 2026, according to major media sources. The legislation will abolish section 21 of the existing Housing Act, which allows landlords to evict without providing a justification to the court, multiple reports indicate. Landlords will still be able to issue an eviction notice if they have a valid reason, such as if they are selling the property, or the tenant is in rent arrears.
The number of months of rent arrears needed to issue a Section 8 eviction will increase from two months to three months, and the notice period for the landlord wanting to sell their home will be four months. All tenancies will become rolling on a monthly basis, rather than for a fixed term, under the Renters' Rights Act. Renters will also get greater rights to have pets, and rent increases will be limited to once a year.
Landlords and agents must give a new official document explaining the tenancy changes to their tenants by May 31, 2026 or risk being fined. 3 million landlords. It remains unclear what specific regulations or tax changes, beyond the Renters' Rights Act, are most driving landlords to sell properties, and how many landlords have actually sold properties or plan to exit the market due to the new law.
The long-term impact on rental availability and affordability after the law takes effect is also unknown, as is how effectively the new enforcement mechanisms, such as fines for not providing documents, will be implemented. What support systems are in place for tenants facing last-minute evictions before the ban has not been detailed.