The Renters’ Rights Act has now passed into law, marking the most substantial reform of the private rented sector in more decades. The arrival of the Act brings clarity to a market that has been overshadowed by uncertainty, speculation and political debate for years, something which has intensified in recent months. This clarity is welcome. It will allow landlords, investors and professionals to plan effectively and to operate with confidence once again.

Marcus Askam-Yates, Managing Partner at Taylor Ross, sums up what many across the industry are feeling.
“This Act brings months of uncertainty to an end, something I think we can all agree on as being a positive.”

His perspective reflects the mindset of a company that embraces change and sees opportunity where others may see disruption.

Government leaders also recognise the need for a balanced approach. Matthew Pennycook, Minister for Housing and Planning, made clear that landlords will have “sufficient time to adjust and prepare” for these significant regulatory changes. The message is straightforward – the industry is evolving and landlords will not be forced to adapt overnight, but must also understand that they cannot afford to be left behind.

At Taylor Ross, we believe this marks the beginning of a more professional, better regulated and ultimately more resilient property market. If approached correctly, it can also be a highly profitable one yielding stable returns.

This article takes a deeper look at what the Act actually changes, why some landlords are leaving the market and why, as others exit, forward-thinking investors are stepping forward.

The Renters’ Rights Act introduces several changes, each of which supports a more transparent and structured system. For some landlords, the transition may feel worrying or unfamiliar and for those already operating to high standards, it simply formalises what good practice already looks like.

1. Removal of Section 21
Section 21 no-fault evictions disappear entirely. All tenancies move to periodic agreements, creating ongoing stability for tenants and removing the recurring uncertainty of fixed-term renewals.

2. Updated and clarified grounds for possession:
Despite what you may have read, possession of a property remains entirely possible. The route is simply more structured. Grounds include selling, moving back in, persistent rent arrears, repeated tenancy breaches and anti-social behaviour. Selling or moving-in grounds for vacant possession cannot be used within the first twelve months, which encourages early stability in the tenancy and is known as the ‘protected period’. It is worth noting that this does not affect your ability to sell a property with tenants in situ.

3. One unified process for rent increases:
Rent increases will now follow a single annual process and be fair, transparent and in line with market conditions. Tenants can challenge increases at the First-tier Tribunal. This standardisation removes potential disputes and gives landlords a level of predictability with their income and investments performance.

4. Higher standards for property condition:
The Decent Homes Standard and Awaab’s Law requirements now apply to the private rented sector. Damp, mould, disrepair and poor maintenance must be addressed promptly and proactively.

Marcus Askam-Yates has made Taylor Ross’s position clear on this.

“Providing well maintained, desirable and most importantly safe housing has always been a focus of mine, something which Taylor Ross will continue to do.”

This reinforces the view that the best investors and the best management partners are already aligned with the new regulatory direction and ensures that their tenants will continue to receive the good service that they have become used to.

5. A new national rental sector Ombudsman:
All landlords will be required to register their properties with a new Ombudsman who will act as an independent adjudicator for tenant complaints. This will not only increase accountability, but is expected to increase professional standards amongst both landlords and their agents.

6. Limits on rent bidding and rent in advance:
With all too common rent ‘bidding wards’ no longer allowed, only the advertised rent may be accepted, and landlords can take no more than one month’s rent in advance. This ensures fairness and consistency for tenants and brings all tenancies, including student lets, into line with one another.

7. Pets and tenant discrimination:
This Act also gives more protection and opportunities to those renting with pets. Tenants will have strengthened rights to request a pet, something landlords cannot unreasonably refuse and must consider.

It will also become illegal for agents and landlords to discriminate against tenants because they are in receipt of benefits or have children.

While the Act brings clarity, it also brings significant change. And whenever change occurs, a segment of the market steps back, or, in some cases, exit completely.

Ageing portfolios:
Landlords with older, poorly maintained properties may feel that the new standards place too much pressure on them either time-wise, financially, or both. Bringing a property up to required conditions can involve significant investment and management oversight; something many are unwilling to take on.

Reactions to headlines:
Some landlords react to political messaging rather than the detailed reality of the legislation. Fear, uncertainty and misinterpretation in the media often drive exits more than the legislation itself. This is something we have seen recently with the increased volume of rental properties coming to the market.

Mortgage pressures:
Rising mortgage rates since the pandemic and over the past two years have strained margins and landlords who bought using finance with higher rates may find this period a natural moment to sell.

A pattern seen before:
Marcus Askam-Yates recognises that this is not the first time the industry has faced major reform.

“Yes it is true that this will bring in the biggest changes to the rental sector in 30 years, and the newest changes since the tenant fee ban of 2019, but, as an industry we have always adapted and grown, something I think we can, and will, continue to do so.”

Landlords leaving the market happens for the many reasons above and is not a sign of collapse. It is a sign of change, and where there is change, there is always opportunity, something we are actively embracing.

While some landlords exit, demand for rental accommodation continues to rise. This mismatch creates prime conditions for investors who understand the fundamentals of what a) makes a good landlord and b) what makes a good investment. The previous ‘luck-driven’ or ‘scattergun’ approach to investing is now ending, with informed decisions and working with a partner you can trust being the key to success.

Demand continues to increase:

In areas like Lincoln, Derby and Nottingham demand is supported by universities, local employment, family relocation patterns and continued regeneration in both inner-city locations and rurally in outlying towns and villages. With fewer landlords predicted, these good quality, available rental homes become even more sought after.

A more favourable buying environment:
Periods of transition create motivated sellers, especially those with maintenance-heavy or outdated stock. Investors can not only secure properties at more attractive prices during these windows but also buy by utilising the recent decreases in interest rates and more favourable terms being offered by lenders.

Refurbishment-led value growth:
As mentioned, many landlords and owners exiting the market have properties that require upgrading and in many cases, significant modernisation. With thoughtful refurbishment, these homes can meet new standards, command premium rents and deliver strong capital growth.

Stability in long-term rental markets:
Periodic tenancies create predictable, long-lasting relationships with tenants who value both well-maintained homes and the newfound security from no-fault eviction created by this Act. Investors seeking stable cash flow will benefit from this shift.

Regulation is increasing, and the Renters’ Rights Act is widely expected to be only the beginning.

Marcus Askam-Yates addresses this directly.
“With the passing into law of this Act, the property landscape, and current focus on lettings, is becoming more regulated. We see this as the start of further regulation across the industry and this is something we all need to embrace”

This is an important message. More regulation does not have to mean more difficulty. It means better standards, stronger protections, clearer expectations and more room for professional operators to thrive.

Investors who operate with professionalism, or who partner with a full-service provider, will be the ones who outperform those who don’t.

The new system rewards investors who are organised, compliant and proactive and discourages those operating without structure.

Taylor Ross is uniquely positioned to support investors across the entire lifecycle of their investment with both our fixed-rate and portfolio building services.

Our services include:

• pre-purchase due diligence
• sourcing and acquisition
• planning and delivering refurbishments
• ensuring full compliance
• ongoing management and maintenance
• long-term investment strategy

This integrated, hands-off approach allows our investors to remain competitive and compliant without being overwhelmed by the procedural requirements of the new legislation.

Regulation does not change the fundamentals of property investing. People still need homes and renting remains essential for millions of households across the country. The East Midlands offers strong yields, balanced tenant demographics and attractive acquisition costs.

The Renters’ Rights Act simply creates a clearer pathway for long-term investment. With clarity comes confidence. With confidence comes opportunity.

Marcus Askam-Yates summarises the Taylor Ross position concisely.

“We see these changes as a positive.”

The message to investors is simple. The market is evolving, but the opportunities are still here. In fact, in many respects they are stronger than before.

The Renters’ Rights Act represents a turning point for the private rented sector and the largest shift seen in a generation. Some landlords will choose to exit and others will stay and adapt. The investors who succeed will be the ones who see the bigger picture.

This period offers a rare window to secure high-potential assets in a market that is becoming more structured, more professional and more transparent; transparency is also one of the values our brand is built on. With fewer landlords and sustained tenant demand, rental properties that are well managed and well maintained will outperform.

With many landlords leaving the market, property remains a strong investment model and investors can turn to Taylor Ross for fixed-rate, secured returns that provide predictable income, transparent terms, and freedom from uncertainty.

Taylor Ross will continue to lead clients confidently through this new era, ensuring that every step of the investment journey is informed, compliant and well executed.

*a full copy of the Act’s official guidance can be found here.