Dwellworks Analyzes the UK Renters’ Rights Act and Its Impact to Talent Mobility

The private rental sector in England is on the cusp of its most significant reform in decades. The Renters’ Rights Act, which received Royal Assent in October 2025, will be phased in from May 2026. The Act applies mainly to England—with some provisions for Scotland and Wales—and is set to reshape the landscape for tenants and landlords, especially in London, where the rental market is both highly competitive and under intense scrutiny.

Why Was the Renters' Rights Act Introduced?

The Act is a response to years of mounting pressure on the country’s rental market. Over 11 million people in England now live in privately rented homes and apartments, a number that has grown as home ownership has become less attainable. The sector has faced criticism for unaffordable rents, unenforced housing standards, and insecurity for tenants. “No fault” Section 21 evictions allowed landlords to remove tenants through no fault of the tenants, leaving many renters facing sudden upheaval and the threat of homelessness. At the same time, landlords have struggled with inconsistent regulations and the challenge of maintaining viable investments. 

The government’s aim is to rebalance the relationship between landlords and tenants, providing greater security and stability for renters while ensuring landlords can still manage their properties effectively. The Act also targets retaliatory evictions, discrimination against tenants with children and pets or those receiving benefits, and the prevalence of substandard housing. 

Key Provisions of the Act and Their Impacts on Renters Moving to London

• Abolition of Section 21 “No Fault” Evictions: Landlords will no longer be able to evict tenants without a valid reason. All new and existing assured shorthold tenancies will convert to periodic (automatic renewal) tenancies, continuing indefinitely unless ended by the tenant or landlord with proper notice.
• Rent Regulation: Rent increases are limited to once per year, with landlords required to give two months’ notice. Tenants can challenge excessive rent hikes at a First-Tier Tribunal, with no fee incurred.
• Ban on Rental Bidding Wars: Properties must be advertised at a fixed price, and landlords/agents cannot accept offers above the advertised rent.
• Stronger Property Standards: The Decent Homes Standard will now apply to the private rented sector, and “Awaab’s Law” introduces stricter requirements for landlords to address issues like dampness and mould.
• Pet Ownership: Landlords can no longer unreasonably refuse requests from tenants to keep pets, and pet deposits are banned.
• Greater Protections Against Discrimination: Blanket bans on tenants with children or those receiving benefits are prohibited.
• Private Rented Sector Database: Landlords must register their properties and safety information, increasing transparency and accountability.

Many of these provisions will primarily and positively impact renters’ rights at the lower cost end of the rental market, where property conditions and unfair treatment of tenants have required the most attention. Dwellworks Destination Consultants will carefully track cost impact across rental rates as landlords factor in any increased maintenance or dilapidations expenses associated with the requirements of the new laws. In many properties in the neighbourhoods frequently requested by transferring employees, the cost of maintenance and regular refurbishment are already standard practice given the expectations of the renters and the relatively high cost of rent. 

London's Rental Vacancy Rate: The Latest Data

London’s rental market is defined by high demand and limited supply. As of Q4 2025, the rental vacancy rate in London was below 2% - one of the lowest in Europe. For context, the average vacancy rate across major European cities is around 3%. In London, this means that for every 100 rental properties, fewer than two are available at any given time.

There are often multiple applications for desirable properties, and tenants may need to place several offers before one is accepted. In the past, this competition has led to bidding wars, which will be illegal under the new Act.

Likely Impact of the Renters' Rights Act on London's Rental Market

Short Term Effects

Some landlords may choose to exit the market due to increased regulation and perceived risks, such as the inability to regain possession of their property without a valid reason. This could reduce the number of available rental properties, at least temporarily, and put upward pressure on rents. However, the Act’s phased introduction is designed to give the market time to adjust. 

Medium- to Long-Term Outlook

Despite concerns, the overall impact may be more nuanced:

• Supply Trends: The number of available rental homes in London has increased by 9% year-on-year (2024 vs 2025) but remains 23% below pre-pandemic levels. While certain provisions of the Act (e.g., no pet deposits, greater administrative burden) may add to rental costs, it is not anticipated that the overall supply of housing will immediately or severely be impacted. Supply of new housing as well as the exit of some current landlords will be carefully watched once the Renters’ Rights Act is fully implemented to determine the new base level of supply in an evolving London market.
• Cost of Rent: The pace of growth in the cost of rent has slowed, with average advertised private rents in London rising by 2.8% in the year to November 2025, compared to much sharper increases in previous years.
• Vacancy Rate Stability: The vacancy rate is expected to remain low, as London’s population and demand for rental housing continue to grow. The Act’s measures—such as banning bidding wars and limiting rent increases—may help to moderate rent inflation and make the market more accessible for tenants. 

How Dwellworks On-the-Ground Expertise Helps Renters

Dwellworks Destination Services is a leading provider of rental homefinding search and support for professionals transferred by their employers to the UK and across Europe. Our in-market team of 40+ Destination Consultants knows the London rental market like the back of their hand and can source rental opportunities both through online searches and via research and relationships with hundreds of private landlords and estate agents. Our 20 years’ experience in the market enables us to find active, validated, and well-matched properties for relocating employees and their families whether those are early career professionals looking for a flat-share or senior executives looking for single family homes. Our services also include area orientation, school search, and settling in advice and coordination, and we are experts at providing housing options that meet the pricing and lifestyle needs of our customers. As experts on the ground in the London market, our Consultants understand the impact of the recently passed Renters’ Rights Act and can guide the employees we support in understanding their leasing and tenancy terms under the new regulations. 

Our services in London are highly rated by global talent moving to and within the London market. We’ve shared sample feedback here from an employee who moved to London in late 2025: 

“I wanted to take a moment to sincerely thank you both for all the support throughout my relocation to London. Thank you so much for helping me navigate the apartment search and for supporting me through what was at times a challenging situation with the management company. It genuinely would not have been possible without your guidance and persistence. I'm very grateful for all your help and support. Thank you again for making this transition much smoother, and I wish you all the very best for 2026.” 

As the preferred choice of relocation management companies and corporate employers for destination services in the UK and globally, Dwellworks is also a reliable source for market updates and critically important trends. For a detailed look at the impact of the Renters’ Rights Act as it relates to corporate relocation, access our infographic HERE. 

Conclusion 

The Renters’ Rights Act represents a bold attempt to address long-standing issues in the UK’s private rental sector. While the transition may bring short-term challenges, especially in London’s high-pressure market, the long-term goal is a fairer, more stable, and more transparent system for both tenants and landlords.

As the Act’s phased implementation begins in 2026, Dwellworks will provide essential service support and updates on how the market responds, so our clients can continue to plan their talent mobility plans with the best available insights and information. 

About Dwellworks:

Dwellworks is the world’s largest provider of destination-related services and temporary living solutions for the globally mobile workforce and business travelers. We provide business-to-business solutions for Fortune 1000 and emerging companies directly and through their relocation management partners. Whether a company needs to relocate its employees across the country or around the world, we provide a range of support services to help employees and their families transition successfully from their home location to a new destination.

Dwellworks supports the diversity of our clients’ globally mobile workforce with personalized destination solutions in 16 countries, covering hundreds of major relocation markets. Dwellworks Living, our global furnished temporary living solution, offers corporate housing accommodations for relocation and business travel customers in 125 countries. Our full-service real estate brokerage, Station Cities, supports home rentals, sales, and purchases in the Tri-State New York area and Chicago. Visit our homepage, learn about our services, and read our blogs to learn how we can help with your relocation and business travel needs.