The government has acknowledged it has not conducted an assessment on how ending fixed-term tenancies under the Renters’ Rights Act will affect the rental market.
In response to a written question from Liberal Democrat MP Dr Roz Savage, Housing Minister Matthew Pennycook confirmed no evaluation has been carried out regarding the impact on landlords’ ability to sell or regain possession, or on overall rental supply.
The Renters’ Rights Act replaces fixed-term contracts with periodic tenancies, with the official impact assessment suggesting this change may reduce voluntary tenant moves. The assessment cites the English Housing Survey, noting that around 6.3% of tenants moved in the past year solely because their fixed term ended. It argues that removing fixed terms could limit these planned moves.
However, industry experts warn that abolishing fixed-term agreements could disrupt the rental market, especially student housing. Sophie Lang, ARLA Propertymark’s regional executive for Cornwall, told Property118 that fixed-term contracts provided certainty aligned with academic cycles, and their removal could create uncertainty for both landlords and tenants.
A survey by agency software provider Alto found that more than a third of letting agents believe ending fixed-term tenancies could severely impact the student rental system.
Dr Savage also questioned whether the legislation might increase tenant displacement when landlords sell properties or cause repeated forced moves for compliant tenants. Again, Mr Pennycook admitted no formal analysis had been undertaken.
The government’s impact assessment predicts only a limited number of landlords may exit the market, arguing that any additional costs imposed by the Act are small relative to annual rent and property value. It also points to Scottish reforms, including the abolition of section 21 and the 2019 Tenant Fees Act, suggesting similar changes did not reduce supply.
Yet evidence from the Scottish Association of Landlords tells a different story, showing a loss of 22,000 rental properties in Scotland in a single year due to government policies and anti-landlord sentiment.
The National Residential Landlords Association (NRLA) survey shows 41% of landlords intend to sell properties in the next 12 months, far outweighing the 6% planning to buy.
Critics argue that ending fixed-term tenancies introduces uncertainty for landlords trying to plan property sales or tenancy arrangements. They claim it undermines protections that previously ensured tenants and landlords could anticipate lease periods with confidence.
Student housing is expected to be particularly affected, as term-time cycles rely heavily on predictable tenancy lengths. Agents warn that removing fixed-term contracts could create logistical and financial complications for both landlords and students.
The lack of a proper impact assessment has left many in the industry concerned that the government is underestimating the effect on supply and market stability.
While the government maintains that disruptions will be minimal, industry data and surveys indicate a potential decline in rental stock and confidence among landlords.
Overall, the abolition of fixed-term tenancies under the Renters’ Rights Act is being met with apprehension, with experts and surveys highlighting possible supply reductions and market instability despite government assurances.
The debate continues over whether the new legislation will achieve its intended tenant protections without unintentionally discouraging landlords from staying in or entering the rental market.
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