Protected on paper, priced out in reality: the unintended cost of renters’ reform
The Renters’ Rights Act was introduced to protect tenants - abolishing the ‘no-fault’ evictions, limiting rent increases and replacing fixed-term tenancies with rolling contracts.
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On paper, these reforms sound great. In practice, however, they are making life more difficult for the very people they aim to help.
The most immediate impact has been a growing exodus of landlords from the rental market. Faced with tighter regulations and reduced flexibility, many property owners are choosing to sell, leading to an imbalance.
There are fewer available homes and more tenants competing for them. The result is predictable - rents are rising by around 10%. Properties that were recently listed at £2,500 per month are now appearing closer to £2,750, pricing out many renters. People can no longer afford to live in their desired areas.
At the same time, increased competition is changing how tenants are selected. While policies such as limiting upfront payments were designed to level the playing field, they have had the opposite effect.
Landlords, unable to mitigate risk through larger advance payments, are becoming far more selective. Prospective tenants now face detailed referencing processes, interviews and heightened scrutiny of their financial and rental history.
This shift disadvantages those without perfect records - students, freelancers, or people with less conventional incomes - who may find themselves repeatedly overlooked.
Previously, landlords might have been more flexible with reliable tenants, keeping rents slightly below market rates in exchange for stability and fewer issues.
Now that Section 21 has been abolished, landlords will aim to price problematic tenants out of their properties. If they complain a lot or cause issues, landlords will just put the rent up every year to the full market rate.
The tenant has no other option than to pay that price or they will be served a Section 8 notice, involving legal proceedings.
In short, the policies designed to protect tenants are increasing competition and driving up costs. The result is a rental market that is more expensive, more selective and less accessible.
Once homeless and living in his car, Nathan left school at 15 without GCSEs before carving out a career in real estate and becoming a self-made millionaire. He is now the owner of the top-ranked property consultancy Nathan K Real Estate, which specialises in buying and selling some of London’s most unique and luxurious homes.
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