Upgrading energy efficiency under the Renters’ Rights Act poses new challenges

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Upgrading energy efficiency under the Renters’ Rights Act poses new challenges

A landlord association has warned the Renters’ Rights Act could hamper energy efficiency improvement plans.

In a post on its website, the National Residential Landlords Association (NRLA) said that previously landlords could wait for a tenancy to end or use Section 21 to create a void period in which to carry out improvement works.

However, under the Renters’ Rights Act, Section 21 has been abolished, and with the government’s announcement that all private rented properties must meet EPC C targets by 2030, the NRLA has raised concerns about how landlords will retrofit homes when tenants have no obligation to leave during works.

Criteria is restrictive

The NRLA says the only realistic route for gaining possession to carry out retrofit works is Ground 6, which applies when a landlord plans to demolish or significantly redevelop a property and the work cannot be done with the tenant still living there.

However, the criteria are very restrictive. The threshold for what counts as substantial is high and typically involves major structural or transformative work that would make the property uninhabitable.

According to the NRLA, most energy efficiency upgrades, even those that are expensive, are unlikely to meet this requirement.

There are also further conditions, as the landlord must have owned the property before the tenancy started and the tenancy must have been in place for at least six months.

Only a temporary solution

The NRLA explains that where tenant cooperation is needed, landlords can register a third-party consent exemption under MEES. This can offer protection from enforcement, provided landlords can show they have made genuine attempts to obtain consent.

However, this is only a temporary solution. The exemption lasts for five years or until the tenancy ends, whichever comes first, and does not remove the requirement to meet EPC C but simply delays it.

The NRLA adds that once the tenant leaves, the exemption no longer applies and landlords will need to carry out the necessary improvements.

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Landlords exit market as regulatory pressures rise

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Property118

Landlords exit market as regulatory pressures rise

Nearly 700 former homes to rent are listed for sale every day as legislation piles pressure on landlords, according to new data.

Research by Savills reveals that 254,000 previously let buy-to-let homes were listed for sale in the past 12 months to the end of March, equivalent to 697 properties per day.

The amount of buy-to-let stock for sale has increased by 28% compared with March 2024 and sits 9% above levels seen in the year to March 2025.

Whether rental property still stacks up

Savills explains a combination of legislative pressures has caused landlords to weigh up their options.

The estate agents explain: “For many landlords, the Renters’ Rights Act has become a clear point at which to reassess their investment. This has been compounded by fixed-rate mortgages coming to an end and wider regulatory pressures, including higher minimum energy efficiency standards.

“Together, these factors are driving a more fundamental review of whether rental property still stacks up, particularly for smaller, mortgaged landlords.

“We’ve seen a notable increase in Section 21 notices being served, often as a way for landlords to test achievable rents in the open market. However, we would also expect this to translate into more sales over the coming months.”

The findings come as Landlord Action founder Paul Shamplina said on social media he has “never seen so many Section 21s served”, describing the situation as “unprecedented”.

He warned that while the Renters’ Rights Act is intended to offer greater protection for tenants, “it will get worse before it gets better” as landlords sell up.

Broader restructuring of the market

Savills’ research also examined whether buy-to-let properties listed for sale ultimately changed tenure, finding that 14% of those which sold were purchased by other landlords, effectively returning to the private rented sector.

Savills explains: “Looking ahead, refinancing and tenants choosing to move on are likely to become the main sale triggers.

“But with a significant number of homes returning to the rental market under new ownership, it is not just about shrinking supply, but a broader restructuring of the market towards a smaller more committed pool of professional landlords.”

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Older landlords are driving the contraction of the rental market

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Property118

Older landlords are driving the contraction of the rental market

A clear pattern is emerging within the private rented sector, and it is being shaped by experience rather than inexperience.

The landlords most likely to reduce their portfolios are not new entrants testing the market. They are long-established investors who have already built, refined and, in many cases, de-risked their positions over time. These are landlords who have seen multiple cycles and are now choosing to step back.

That matters because it changes the nature of what is happening. This is not a market losing its weakest participants. It is a market where some of its most experienced operators are quietly reducing their exposure. The motivation is rarely immediate pressure. For many, the question has shifted. It is no longer about how to grow further, but whether continued involvement still aligns with their long-term objectives. At a certain stage, simplicity, control and certainty begin to outweigh further expansion. That shift tends to happen later in the investment lifecycle.

Data from the Property118 Landlord Sentiment Survey Q1 2026 reflects this dynamic, showing that 76.8% of landlords are aged 56 or above, with a significant proportion planning to reduce their portfolios.

This places the current trend into context. When a sector is dominated by experienced landlords approaching a natural point of reassessment, the direction of travel becomes more predictable. Decisions are less about reacting to short-term conditions and more about aligning with longer-term personal and financial priorities. It also raises a more structural question: If older landlords are reducing exposure, who replaces them?

With relatively few younger landlords entering the sector, the balance begins to shift. Over time, that shift has the potential to influence not just activity levels, but the overall availability of rental housing.

This is not a sudden change, it is gradual, driven by individual decisions that, collectively, begin to reshape the market.

For now, one conclusion stands out: the contraction of the rental market is being led not by those who failed, but by those who have already succeeded.

For many landlords, the question is not whether the market is changing, but what that change means for their own position.

If you are holding a portfolio with relatively low borrowing, or are beginning to reassess how your assets are structured, this is often the point where a more joined-up view becomes useful.

An invitation for established landlords

If you find the Property118 articles helpful and are curious about how those ideas apply to your own portfolio, you are welcome to take the conversation a step further.

These conversations are typically most useful for landlords with established portfolios and relatively modest borrowing who are beginning to reflect on how their assets could work more effectively in the years ahead.

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From there we can arrange a free introductory discussion to explore how your portfolio works as a whole and what that might mean for the years ahead.

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Many landlords set to miss key Renters’ Rights Act deadline

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Many landlords set to miss key Renters’ Rights Act deadline

A Freedom of Information request reveals that the government’s mandatory Renters’ Rights Act information sheet was downloaded 153,000 times in the first four weeks after publication.

That’s despite there being 2.3 million private landlords in England who are required to serve it on tenants by 31 May.

The data was obtained by Landlord Studio from the Ministry of Housing, Communities & Local Government.

Landlords who fail to provide the information sheet by the deadline could face penalties of up to £7,000 per tenancy.

Landlord RRA challenge

The firm’s co-founder, Logan Ransley, said: “The findings shine a light on a rollout challenge when it comes to the Renters’ Rights Act.

“Even allowing for reuse across portfolios, engagement with the official document looks low compared with the size of the private rented sector.

“We know the property sector isn’t uniform – some landlords already have systems in place for managing compliance and others don’t, relying on more manual or informal processes.”

He added: “When you introduce something like this on a fixed deadline, it doesn’t land in the same way for everyone.

“With the deadline approaching, landlords need to make sure they can not only provide the information required, but also evidence that they’ve done so.”

Uneven landlord compliance

The FOI response also showed 189,000 Gov.uk page sessions over the same four-week period, meaning not every visitor went on to download the official document.

Letting agents may account for part of the gap, with one download potentially used across several landlord clients or portfolios.

However, Landlord Studio said the figures suggest direct engagement with the official compliance material has been uneven ahead of the deadline.

The FOI response has been made publicly available through WhatDoTheyKnow.

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