Asking rents across 21 of the UK’s largest towns and cities have climbed by 6% in the three months following the introduction of the Renters’ Rights Act (RRA), according to research by property management firm Ringley Group.
The study found that rents rose by 5.6% during the first two months after the legislation came into effect, with increases continuing at a faster pace afterwards. At the same time, a growing number of landlords are considering leaving the private rented sector, raising concerns about the availability of rental homes.
Ringley estimates that 35% of private landlords have either sold their properties or attempted to sell within the past year. The English private rented sector is also estimated to have lost around 354,000 homes in the three years leading up to May 2025.
Rental Demand Remains Strong as Homeownership Becomes Less Affordable
Despite the rise in asking rents, demand for rental accommodation continues to be supported by difficulties with homeownership. According to Ringley’s research, affordability challenges are keeping more households in rented accommodation for longer, even though rental growth has slowed from its peak in 2024.
However, the departure of smaller landlords could place additional pressure on the supply of homes available to tenants. This comes at a time when developing new rental properties is becoming more challenging due to rising costs, questions over investment viability and uncertainty about future regulation.
Ringley warns that the combination of landlords leaving the market and a slowdown in new rental housing could create further difficulties for the private rented sector.
Institutional Investment Offers Some Support
While some landlords are withdrawing from the market, institutional investors continue to invest in purpose-built rental housing, although activity remains selective.
Build to Rent (BTR) investment was estimated at £5 billion in 2024 and £5.3 billion in 2025. The sector is forecast to attract more than £5.7 billion in investment during 2026.
Investment in single-family rental properties also exceeded £3 billion in 2025, marking a 28% increase compared with the previous year. This segment now represents almost 60% of BTR investment, up from just 6% in 2019.
The Build to Rent sector has expanded considerably over the past 15 years and now accounts for around 10% of all new homes. According to Ringley, these developments can be delivered between 30% and 60% faster than non-BTR schemes.
However, the number of homes being delivered remains at approximately 17,000, compared with a potential capacity of around 30,000. This suggests there is still room for growth, provided developers can overcome the financial and regulatory challenges affecting new projects.
Ringley Calls for Changes to Property Taxation
Ahead of the Budget scheduled for 28 October, Ringley Group is urging the Government to introduce measures aimed at improving the viability of rental housing developments and encouraging further investment.
One of its key recommendations is targeted support through Stamp Duty Land Tax (SDLT) for high-density housing projects.
The group estimates that the removal of Multiple Dwellings Relief has reduced Build to Rent portfolio values by £4 billion and stalled around 25,000 homes. Ringley argues that bringing back targeted relief would cost the Treasury approximately £155 million but could generate around £650 million in tax revenue through wider economic activity.
The organisation believes this could be an initial step towards reviewing how high-density housing is taxed and making large-scale rental developments more financially viable.
Another proposal is to remove council tax on newly built properties that remain vacant during the initial letting period.
Large residential developments can take between one and two years to reach full occupancy. During this period, council tax on empty properties can create additional and unpredictable costs for developers. Ringley believes removing this charge would reduce financial risks and make projects more attractive to investors.
Concerns Grow Over the Impact of the Renters’ Rights Act
Ringley Group has warned that the early effects of the Renters’ Rights Act could have unintended consequences for the rental market.
A spokesperson for the company said the initial months following implementation had already seen a notable increase in asking rents across major towns and cities, alongside a rise in smaller landlords leaving the sector.
The group also highlighted concerns about the declining supply of privately rented homes, particularly as the development of new rental properties faces mounting viability challenges and uncertainty over future regulations.
Ringley is calling on the Chancellor to use the upcoming Budget to restore targeted SDLT support for the rental sector and introduce further measures to strengthen investment confidence.
With asking rents continuing to rise and a significant proportion of landlords considering an exit, the future supply of rental accommodation remains a key concern. The decisions made by the Government and property investors could play an important role in determining whether the sector can deliver enough homes to meet ongoing tenant demand.
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