New research from SpareRoom has found that only 9% of landlords currently evicting tenants cite the Renters’ Rights Act as the direct reason, challenging the narrative that the legislation is the primary driver of possession actions across England’s rental market.
The survey of 4,484 tenants in England, including 1,897 respondents in London, reveals that property sales account for 43% of evictions, making it the most frequently cited reason landlords give for regaining possession. This aligns with broader trends showing some landlords exiting the market amid changing economic conditions and regulatory pressures.
Transparency concerns in eviction notices
Beyond property sales, 23% of tenants report their landlord provided an alternative reason for eviction, while an equal proportion say no reason was given at all. The latter finding highlights ongoing transparency issues in the sector, even as regulatory scrutiny of landlord practices increases.
A further 14% of tenants in England report landlords seeking possession to move back into the property themselves, reflecting traditional justifications linked to changing personal circumstances. Against this backdrop, the Renters’ Rights Act appears as a comparatively minor factor in current eviction decisions.
Market implications for investors
The data suggests that while the Renters’ Rights Act dominates industry discussion, day-to-day landlord decisions to regain possession remain primarily driven by financial and practical considerations rather than policy changes alone. This pattern mirrors recent market dynamics showing increased property supply across the UK housing sector.
Matt Hutchinson, director of SpareRoom, said: “Being a landlord requires work and good landlords know that. But there will also be good landlords who’ve decided compliance isn’t worth the hassle and it will be a great shame to lose them.”
He added: “It would be an exaggeration to say supply in the flatshare market has been immune to the Renters’ Rights Act, but it’s been surprisingly resilient when you consider the response from landlords, many of whom said they planned to quit the market or reduce their portfolios.”
Rental growth patterns
Since the Renters’ Rights Act received Royal Assent on 27 October 2024, approximately 30% of tenants in England who remained in the same property have experienced rent increases. However, SpareRoom does not provide comparable year-on-year data, making it difficult to determine whether this represents typical market conditions or a shift linked to current circumstances.
The research comes as rental demand patterns continue to evolve across different UK regions, with varying levels of tenant competition affecting local markets.
Hutchinson noted that the Renters’ Rights Act will provide tenants with greater security through the end of Section 21 ‘no fault’ evictions and fixed-term tenancies, alongside restrictions on landlords requesting multiple months’ rent in advance. However, he cautioned that the legislation is “unlikely to do, in the short term at least, significantly reduce rents.”
The findings indicate that whilst regulatory reform features in landlord decision-making, economic factors including rising costs and market dynamics continue to shape portfolio strategies across England’s private rental sector.
