"As deposit challenges persist, the measures of the Renters' Rights Act to curb steep rent increases could give tenants more scope to save, and in turn widen access to the property ladder,"
- Jatin Patel - Barclays
Tenant support for the Renters' Rights Act has grown sharply since the legislation passed, but concern about its longer-term impact on rental supply and costs is rising in parallel, according to the latest Barclays Property Insights report.
The Act came into effect on 1 May 2026, and awareness among renters has risen from 19% in October to 60%. Some 62% now believe it will improve their housing conditions and protections, up from 33% in October, while 61% feel it will make it easier to challenge unfair treatment from landlords, compared to 28% previously.
The shift is already influencing decisions. Around 19% of renters say they are more likely to stay in their current property as a result of the changes. However, unease about the wider consequences is growing. The proportion worried that restrictions on evictions and bidding wars could push rents higher has risen from 24% in October to 45%, with the same share concerned that landlords may exit the market and reduce available supply.
Second homes less attractive
One in 10 homeowners (11%) is considering buying an additional property within the next two years, but appetite is constrained by cost and complexity. High maintenance and running costs are the most cited barrier (28%), followed by the time required to manage a property (24%) and stamp duty costs (21%). A fifth say they would like to own another property but consider it unaffordable.
For those who have already purchased or seriously considered a second home, the average upfront outlay reaches £85,887, broken down as a £50,340 deposit, £29,849 in stamp duty and £5,698 in third-party costs.
Reluctance around becoming a landlord runs deep. Around 69% of homeowners say they would not want to take on that role due to cost and complexity, while 48% view additional property ownership as too financially risky in the current environment. More than a third (36%) believe owning additional properties adds pressure to the housing market, and 34% would rather invest in equities than property.
Nests over nest-eggs
Among Baby Boomers aged 62 to 80, over half (52%) are already mortgage-free or expect to be by retirement. Three-quarters (76%) say they do not plan to draw on their property to fund retirement, while 31% view their home primarily as a family legacy rather than a financial asset. Only 8% have moved or intend to move to a smaller property to release funds, and just 5% plan to use equity release.
Barclays mortgage data shows that over-60s who do buy new properties tend to favour houses over flats or bungalows, with 56.2% of purchases in the past year being detached or semi-detached homes. Properties bought by those aged over 60 are 25.1% more expensive than those purchased by 28 to 43-year-olds, and 79.3% more expensive than those bought by under-27s.
Households are also making practical adjustments amid ongoing economic uncertainty. Some 61% are cutting back on energy use, 32% are reducing non-essential spending, and 27% of mortgage holders are making overpayments to guard against interest rate volatility.
"As deposit challenges persist, the measures of the Renters' Rights Act to curb steep rent increases could give tenants more scope to save, and in turn widen access to the property ladder," said Jatin Patel, head of mortgages, savings and insurance at Barclays.
"However, the longer-term impacts on rental housing remain to be seen, as homeowners weigh up investment in bricks and mortar against other asset classes. For most, property is about far more than finances. It provides stability and plays a key role in family legacy, and many retirees do not need to supplement their income through property. 'Right-sizing' still has an important part to play in unlocking housing supply, but it will only gain traction if there are clear and meaningful incentives."
Julien Lafargue, chief market strategist at Barclays, added: "The interest rate environment remains challenging, with domestic political uncertainty compounded by the ongoing geopolitical tensions in the Middle East. Even so, the UK economy continues to demonstrate resilience, suggesting that once these headwinds ease, conditions should improve."
