Renters Rights Act already reshaping England's housing market

Housing secretary Angela Rayner has ruled out rent controls in England, even as she says the Renters’ Rights Act is already having a significant impact on the market. For tenants facing higher monthly bills, that means the government is leaning on new rights, not a rent cap, to try to ease pressure.

The act received Royal Assent in October 2025 and phase one began on Friday 1 May 2026. It is being described as one of the biggest changes to renting in England in more than 30 years. The new rules ban Section 21 no-fault evictions, end fixed-term tenancy contracts, and restrict both bidding wars and how often rent can be increased. Government guidance says the Renters’ Rights Act 2025 applies to private rented sector tenancies with assured or assured shorthold tenancies, and does not usually cover social housing or lodgers.

The missing piece is rent itself. Charities have warned that renters could still be hit with large upfront payments despite Labour’s election promise to cap advance rent, leaving many households exposed even after the legal changes take effect. In London, just 35% of almost three million renters had heard of the act, a warning that low awareness could blunt the reform before many tenants have a chance to use it.

Labour’s refusal to back rent controls marks a clear break from its earlier approach. In 2015, the party was associated with plans for three-year tenancy agreements and rent increases capped at inflation, at a time when the English Housing Survey showed 4.4 million households, or 19%, were renting privately. Housing minister Matthew Pennycook has since said rent controls will not be introduced in England.

Landlords are also adjusting to the change. The National Residential Landlords Association says the act has arrived and left owners with questions about what the new rules will mean in practice. That unease is feeding into a wider market already under pressure from affordability concerns, with Labour also promising to build 1.5 million new homes by 2029 and Angela Rayner’s planning overhaul restoring mandatory local housing targets.

For renters, the first phase brings stronger protection against eviction and more limits on tenancy churn. It does not bring a ceiling on the rent itself.