How Tenants and Landlords Are Responding to the New Rental Rules
Hear from our Head of Property Management, Laura Balme, on the early trends since the Renters' Rights Act became law.
The introduction of the new Renters’ Rights Act has prompted plenty of discussion across the lettings industry. From concerns about increased tenant turnover to questions around upfront rent and landlord confidence, many property professionals have been asking the same question:
How are tenants and landlords actually responding?
While it’s still early days, our data provides valuable insights into the behavioural changes we’re seeing across our property portfolio in Manchester, Birmingham, and London. The initial picture suggests that tenants are making use of the additional flexibility available to them, but not in the volumes that many feared.
Tenant Trends: More Notices, But Not More Problems
Between 1st May and 22nd May 2026, a total of 79 tenant notices were served across our managed portfolio, with 54.4% submitted within the first week of May when the legislation came into force.
This is compared to a much lower, 28 notices to vacate, received from tenants for the same month in the previous year. Importantly, though, the rules are now entirely different and so can’t be compared like-for-like. Not only can tenants whose fixed-term agreement is nearing its end serve their notice to leave, but absolutely any tenant can. So, in the context of over 2,000 managed properties in the Settio portfolio, only 79 tenants have chosen to leave. This is an incredibly reassuring statistic at this early stage of the Renters’ Rights Act transition
Behind the data, our additional research into these notices tells an interesting story. Rather than indicating dissatisfaction with a property or service experience, many appear to be linked to reasonable life events and natural population movement.
The most common reasons cited for serving notice in May have been ending university courses and leaving the UK by international students, and moving cities or changes in relationship status among professionals.
This aligns with what we and other industry professionals expected to see with the Renters’ Rights Acts, greater flexibility allowing people to live somewhere for as long as they want and need but not having to commit to longer fixed terms in order to secure a home.
A student who previously committed to a 12-month tenancy but only required accommodation for their nine-month course can now leave when their studies finish.
Our evidence so far suggests that the flexibility of the change in legislation offered is welcomed by those who need it, but not exploited by those who don’t. As expected, people living in a high-quality home, paying a reasonable market rent, and receiving a high level of service have no reason to move.
Will These Tenant Trends Be the Same Across the UK?
Probably not.
Rental markets vary significantly across the country. Cities with large student populations are likely to experience different trends from areas dominated by long-term family lets or professional tenants.
Similarly, landlords and letting agents who provide responsive communication, proactive maintenance, and high levels of customer service may experience lower tenant turnover than those who take a more reactive approach.
At this stage, we believe it will take between six and twelve months for the full impact of the new rental rules to become clear. The first wave of notices largely represents tenants who were already planning a move and can now act on those plans more easily.
Upfront Rent Changes: What Does the Data Tell Us?
One of the most talked-about aspects of the new legislation has been restrictions around upfront rent payments.
This has naturally raised concerns amongst landlords who traditionally relied on upfront rent arrangements, particularly within the student sector.
However, it is still too early to draw firm conclusions.
The real test is likely to come during the next major student letting cycle between July and September, when thousands of student tenancies are agreed across the UK.
Students may remain attractive as tenants despite these changes. They often provide predictable occupancy periods and consistent demand, even if payment structures evolve.
What landlords and agents will be watching closely is whether alternative affordability assessments become more important and whether tenant selection criteria change over time.
Investor Trends: More Property Owners Are Considering Selling
While tenant behaviour has attracted most of the attention, we’re also seeing an emerging trend amongst landlords.
The clearest landlord-side shift so far is an increase in the number of property owners exploring a sale.
Whenever significant regulation is introduced, some landlords reassess whether residential property still aligns with their investment objectives. Increased compliance requirements, uncertainty around future reforms, and concerns about profitability can all influence those decisions.
As a result, we’re seeing a noticeable increase in conversations around sales and valuations.
An increase in available housing stock could lead to greater competition between sellers and downward pressure on prices. However, it’s far too early to determine whether this will become a long-term trend or simply a short-term reaction to legislative change. So far, our sales team has been delivering a 30% increase in sales instructions across our offices.
What We Haven’t Seen Since the New Rental Rules Came into Force
Perhaps the most reassuring finding is what we haven’t seen.
Despite concerns that tenants might become significantly more demanding following the reforms, we have not experienced any meaningful increase in maintenance requests.
This is particularly encouraging, given the predictions of some commentators before the legislation came into force.
We believe there are two key reasons for this:
- Happy tenants generally do not want to move.
- Proactive property management continues to make a significant difference.
Technology-led maintenance reporting, efficient troubleshooting processes, and well-trained property management teams help resolve issues before they become frustrations.
In many cases, poor communication or slow response times are the factors that prompt tenants to start looking elsewhere.
One of the less-discussed advantages of the new rental rules for landlords is that there is no longer a fixed renewal cycle, encouraging tenants to reconsider their housing arrangements at every fixed term.
If tenants are happy, they are more likely to remain in place rather than actively searching for alternatives.
Key Takeaways for Landlords
While the long-term impact of the new rental rules is still developing, several early trends are becoming clear:
| Trend | What We’re Seeing |
| Tenant Notices | Increased at the start of May, largely linked to studies, relocation, and existing life plans. |
| Maintenance Requests and ‘unhappy signals’ | No increase so far. |
| Landlord Sentiment | Growing interest in selling amongst some landlords. |
| Student Market | Too early to assess the full impact of upfront rent changes. |
| Overall Market Impact | Likely to take 6–12 months before clear long-term trends emerge. |
The Bottom Line
The early evidence suggests a more balanced picture than many expected.
Tenants are using the additional flexibility provided by the new rules, but there is little indication that this is being driven by widespread dissatisfaction. At the same time, landlords are carefully assessing how the changes may affect their long-term investment strategies.
For landlords, the lesson remains the same as it was before the legislation changed:
Tenant flexibility may have increased, but tenant loyalty is still earned through excellent service, proactive management, and fast communication.
Those who continue to focus on delivering positive tenant experience are likely to be best positioned as the market adapts over the coming months.
