Almost 850,000 properties have left the private rented sector across the UK in the last decade, equivalent to 18.6% of all PRS stock, according to analysis from TwentyEA.
Put another way, close to one in five homes that were rented at some point in the last ten years have since been sold and not returned to the rental market.
This effect cannot be attributed solely to the Renters' Rights Act, but the timing is significant, as more rental homes were sold as the Act moved closer to implementation. The legislation became law last year, with most of its rules coming into force on 1 May 2026, while the highest volume of former rental properties were sold in 2025, almost 181,000. The findings form part of TwentyEA's latest Property & Homemover report, covering Q2 2026.
Rental supply reaches a seven-year high in the private rented sector
Despite landlords continuing to exit the sector, rental supply across the private rented sector has actually reached its highest level in seven years, rising by more than 17% so far in 2026 versus 2025. Several factors are likely driving this, with purpose-built rental homes cited as one of the main reasons.
In Q2 2026, property listings for these homes were 22% higher than in Q2 2025, helping to explain how rental supply can rise even as more traditional landlords leave the market.
"While it's encouraging to see rental supply reach a seven-year high, that doesn't tell the whole story," said Nick Huntley, director at TwentyEA.
"Many letting agents are still feeling the effects of landlords leaving the traditional PRS, reducing the stock they have available to market."
He added, "The growth in purpose-built rental housing is helping to bring new homes into the sector, which is positive news for renters, but it complements rather than replaces the role of private landlords. The healthiest rental market is one where both parts of the sector are thriving and overall supply continues to grow."
Instruction price inflation
To examine the effects of the Renters' Rights Act two months on, TwentyEA also analysed instruction prices. Wales and the Midlands experienced the highest price inflation, while Scotland, Inner London and the South East saw more modest rises. The East of England recorded the largest price deflation, at 7.7% year-on-year, followed by Yorkshire and the Humber at 4%.
The impact of the Renters' Rights Act on rents was always expected to be mixed. Tighter controls on rent increases and the ban on rental bidding were expected to ease upward pressure on rents, but landlords facing higher compliance costs and greater restrictions may instead have raised initial asking rents. These competing forces help explain why rental price trends have varied so significantly across regions.
Build-to-rent premiums
The impact of the Act is also likely to have differed by landlord type. Build-to-rent operators, with larger portfolios and dedicated management teams, are generally better placed to absorb additional regulatory requirements than smaller private landlords.
Despite the changing regulatory landscape, build-to-rent properties have continued to command a rental premium across almost every region, underlining the sector's resilience and continued demand for professionally managed rental homes.
Supply, demand and available stock levels
TwentyEA's analysis also covered supply and demand, examining new rental listings, lets agreed and the volume of homes currently available to rent. Supply of newly listed rental properties has increased across every UK region, with the strongest growth in the East Midlands and Wales.
While build-to-rent expansion partly explains this, the Renters' Rights Act may also have influenced landlord behaviour, with some possibly delaying decisions until the legislation took effect before reassessing their position. Seasonal trends may also be at play, as households look to move before the new school year, while in some regions rising rents and stronger returns may be encouraging landlords back into the market.
Demand has also risen across almost every region except Inner London, reflecting continued pressure in the rental market. However, supply growth has outpaced demand, and the number of homes available to rent has increased in ten of the UK's twelve regions, with only Yorkshire and Inner London bucking the trend.
"The rental market is still very busy, but it's becoming better balanced," Huntley added. "Demand continues to grow in almost every region, yet supply is increasing even faster across most of the country. If that trend continues, it should gradually reduce the intense competition we've seen over the last few years and create a more stable environment for both renters and letting agents."
