The Renters' Rights Act came into force on 1st May. A month in, we wanted to share what's actually happening — not the headlines, but the real picture we're seeing on the ground here in Hull.
Landlords are leaving — and the numbers are significant
Since the Act was announced last year, we've seen a 9% increase in rental properties being listed for sale in the north east area. Nationally, Savills reported that 700 former rental properties were hitting the sales market every single day over the last 12 months.
But who's selling? It's not panic — it's exhaustion.
The landlords exiting right now are largely those who've held properties for 10 to 20 years. They've navigated the removal of mortgage interest relief, the introduction of Section 24, licensing schemes, EPC requirements, and now this. For many, the Renters' Rights Act is simply one change too many. They're not angry — they're tired. And they're cashing out.
Rents spiked — here's why
Rents in our area increased by 7.6% in the lead-up to May 1st. The reason is straightforward: the Act caps rent reviews to once per year, so landlords moved to increase rents before that restriction kicked in. That wave has now passed, but it's left rents at a higher baseline — which is good news for investors buying into the market now.
How landlords are actually selling — and why it matters
Here's something the government didn't anticipate: most landlords aren't selling vacant properties. They're selling tenanted.
With the abolition of assured shorthold tenancies, landlords no longer have the straightforward route to vacant possession they once had. Rather than evicting tenants, refurbishing, and carrying the costs of an empty property, many are choosing to sell with the tenant in situ — keeping the rental income flowing until completion.
Taking it a step further, we're also seeing landlords offer their tenants first refusal to buy the home they're renting. It's simpler, faster, and avoids the cost and hassle of a traditional sale. For the tenant, it's an unexpected route onto the property ladder. For the landlord, it's the path of least resistance.
The government's ambition was to free up housing stock for first-time buyers. That may still happen — just not in the way they envisioned.
A new generation of investors is stepping in
As the old guard exits, a new wave of investors is arriving — and they look quite different.
Younger, more educated (the property investment education space has exploded in recent years), and far more strategic, these investors aren't just buying to let on a standard AST. They're looking at serviced accommodation, short-term lets, HMOs, and hybrid models. With periodic tenancies now in place from day one and tenants able to serve just two months' notice, many investors see less certainty in traditional buy-to-let — and are pivoting toward strategies where they retain more control and can earn significantly more per night.
AirBnB and serviced accommodation, in particular, are seeing renewed interest as a result.
What does this mean for you?
If you're an existing landlord, now is a good time to review your strategy — whether that's adjusting your rent, reconsidering your letting model, or having a conversation about whether your portfolio is still structured in the way that works best for you.
If you're looking to invest, the current market is genuinely interesting. Stock is coming to market, some vendors are motivated, and yields in Hull remain among the strongest in the country.
Either way, we're happy to talk it through — no agenda, just a straight conversation.
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