Surprising trend in the UK’s rental market as new tenant rules are set to come into effect

With the Renters’ Rights Act set to come into effect in May, many have predicted a dramatic drop-off in the UK rental market as landlords exit en masse.

However, new data from Hamptons shows that rumours of a mass landlord exodus have been greatly exaggerated.

While the new legislation aims to impose more duties on landlords and improve the security and welfare of tenants, it has not the adverse effect on the market that many have anticipated.

In the last month, Hamptons said that 42% more new properties came onto the London and South East markets compared to the month before, and applicant registrations for homebuyers are up 33% year-on-year.

The estate agency expects a busy Spring market for home sales, and its lettings market outlook is similarly bright, despite widely cited concerns over the incoming Renters’ Rights Act.

In February, the number of new rental homes entering the market rose by 6% compared to the same time last year, and tenant demand continued to grow by 4% year-on-year.

Demand continues to outstrip supply, and rental prices continue to grow roughly in line with inflation, with average rents increasing by 3.6% annually.

Competition was highest outside of London, where rents saw the highest annual growth across all property types, although demand was particularly strong for houses with four or more bedrooms.

With the incoming Renters’ Rights Act set to migrate all fixed-term tenancies to a assured periodic tenancies, Hamptons has seen an expected shortening in fixed-term tenancies, although it is confident that the market will remain stable through the introduction of the new legislation.

“Overall, rental market conditions remain stable and entirely normal, with supply, demand and affordability continuing to shape activity,” said Hamptons Executive Head of Residential Lettings and PRS Catherine Westling.

“While it’s important for landlords to be prepared for the upcoming legislative changes, it is equally important to recognise that these changes alone are unlikely to materially shift day‑to‑day market behaviour.”

“The fundamentals remain strong, and confidence should remain steady as we move into spring,” she said.

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