Allison Thompson, nationwide lettings managing director, Leaders
The Renters’ Rights Invoice would be the defining affect on the sector in 2026. Whereas it raises the bar for professionalism and improves requirements for tenants, it additionally represents the most important operational shift landlords and brokers have confronted in a era. Lengthy-standing tenancy practices are altering, and the dimensions of coaching and techniques work required shouldn’t be underestimated. The penalty regime is now clear and carries actual weight: severe breaches, similar to illegal eviction or harassment, can appeal to civil penalties of as much as £35,000, and procedural failures involving tenancy notices and prescribed processes also can result in substantial fines. At LRG, this has pushed a transparent shift in how we function. We’re transferring additional in direction of being an advisory-led agent, appearing as a trusted voice for landlords at a time when compliance, execution and threat administration matter greater than ever.
As the executive burden will increase, our expectation is that the necessity for skilled managing brokers will solely strengthen. In our Northern areas, an open day noticed us communicate to over 800 landlords and safe greater than 50 new directions, with the bulk choosing totally managed companies. A recurring theme from these conversations is that many landlords are usually not listening to something in regards to the Renters’ Rights Act from their present brokers, regardless of implementation being shut.
From an operational perspective, the following section will probably be important. The federal government is anticipated to publish an info sheet in March, when landlords and brokers may have 30 days to problem this to each tenant. Current tenancy agreements will must be amended and reissued, and techniques up to date to replicate new notices and processes.
Rents are nonetheless anticipated to rise, however at a way more average tempo, round 3% nationally and decrease in London, and landlords might want to regulate expectations after a number of years of outstanding progress. Affordability pressures stay very actual for tenants, and referencing continues to be difficult in lots of circumstances. Whereas rents are nonetheless rising, the impression of the brand new lease enhance framework is unlikely to be felt till later within the 12 months.
We additionally count on to see continued adjustments in landlord behaviour. Some smaller landlords will reassess their place, whereas bigger portfolio {and professional} landlords more and more view the present setting as a possibility. Over time, this may reshape the PRS profile, with higher consolidation into skilled funding. We additionally proceed to see sturdy investor curiosity in regional cities similar to Manchester, Leeds and Sheffield, the place the basics stay compelling.
There are nonetheless unanswered questions, notably concerning EPC necessities, which have been repeatedly delayed. Readability right here is important, as it should play a significant function in figuring out whether or not funding within the sector continues. General, 2026 will probably be about execution. Those that put together early, put money into the fitting recommendation and take a proactive strategy will probably be finest positioned to navigate what comes subsequent.
