Renters Rights Act 2025: The UK Private Rental Sector in Numbers
Key statistics on tenancy reform, evictions, deposits, arrears, and the changing face of renting in Britain
Last updated 15 June 2026 · Data from ONS, MoJ, DLUHC, TDS, NRLA, English Housing Survey
The Renters Rights Act 2025 received Royal Assent in October 2025 and came into full effect on 1 May 2026 — the most significant reform of the private rented sector in England in decades. Central to the Act is the abolition of Section 21 "no-fault" evictions, alongside doubled notice periods, a 3-month arrears threshold for mandatory eviction, and enhanced tenant protections.
This page aggregates the latest available data from government sources, industry bodies, and research organisations — providing a factual baseline for understanding the sector before and after the reforms.
Key statistics at a glance
4.7M
Private rented households (England)
English Housing Survey 2024–25
5.1M
Private rented households (UK)
Resolution Foundation
11,402
Section 21 bailiff evictions (2024–25)
Up 8% year-on-year · MoJ
£1,381
Average UK monthly rent
+3.5% annual growth · ONS Apr 2026
£5.53B
Total deposits protected
4.7M tenancy deposits · TDS 2025
52%
Landlords considering exiting
Up from 47% · NRLA
01
Section 21 evictions and the Renters Rights Act ban
The abolition of Section 21 "no-fault" evictions was the flagship reform. The data below shows the trajectory of Section 21 claims in the years leading up to the ban.
As of 1 May 2026, Section 21 evictions are abolished. Landlords must now use Section 8 grounds with specified reasons (sale, moving in, rent arrears, anti-social behaviour, etc.). Notice periods for most grounds doubled from 2 to 4 months, and the mandatory arrears threshold increased from 2 to 3 months' rent.
Key figures
28,112 — Section 21 accelerated possession claims in 2025, the lowest since 2022 (NRLA / MoJ)
6,367 — claims in Q4 2025 alone, a 17% year-on-year decline
30,729 — households that received a Section 21 notice between July 2024 and June 2025
11,402 — households actually evicted by bailiffs under Section 21 in the same period (+8% year-on-year)
43,310 — total bailiff evictions since the ban was first announced in April 2019 (Crisis / LAG)
A pre-ban surge in early 2026 saw Section 21 cases reach 31% of eviction caseload, up from 22% in 2024 (Acorn)
02
The UK private rented sector by numbers
Households and demographics
The PRS has more than doubled since 2000, from ~2.5M to ~5.1M households UK-wide
~11 million people live in private rented accommodation in England alone
3.2 million children now live in privately rented homes — nearly triple the 1.1M in 2000–01
23% of children in England live in the PRS, compared to 22% of working-age adults
Rent trends — ONS data, April 2026
Region
Average monthly rent
Annual change
United Kingdom
£1,381
+3.5%
England
£1,438
+3.5%
Wales
£834
+4.9%
Scotland
£1,019
+2.0%
Northern Ireland
£877
+4.0%
The 3.5% UK annual growth rate is the lowest since March 2022, suggesting rental inflation is cooling. London had the lowest growth (2.0%) and the North East the highest (6.5%). Rental growth in 2026 is forecast at 2.5–6% depending on region (Zoopla).
03
Deposit protection — £5.5 billion at stake
Data from the Tenancy Deposit Scheme's 2025 Statistical Briefing:
4,706,470 deposits protected across England and Wales
£5.53 billion total value of protected deposits, up ~6% year-on-year
£1,175 — average deposit amount, the highest on record
Only 1.00% of deposits end in a formal dispute (46,950 adjudications) — 99% resolve without issue
Cleaning is the most common dispute cause (54%), followed by damage (49%) and redecorating (31%)
Scotland: 243,283 deposits, £215.5M value, highest dispute rate at 2.44%
04
Tenant arrears — a mixed picture
Arrears data from Reposit and Propertymarket shows a nuanced picture:
Average arrears value fell 8% in 2025 to £1,980, but case volumes increased — suggesting more tenants falling behind but with smaller individual debts
By Q1 2026 arrears crept back up to a record £2,281 — 2% year-on-year increase, though growth is decelerating vs the 27% surge in 2023–24
Overall arrears rate fell to 1.7% in October 2025, the lowest since October 2022 (Propertymark)
The average deposit (£1,296–£1,308) leaves a £629–£973 shortfall against average arrears, exposing landlords to significant unprotected risk
Buy-to-let mortgage arrears: 9,520 properties in arrears of >2.5% (Q4 2025, down 9% quarter-on-quarter)
770 BTL possessions in Q4 2025, down 14%
05
Technology and AI adoption in the rental sector
Data from Alto's 2026 Agency Trends Report and Inventory Base's 2025 survey:
52% of estate and letting agents plan to adopt AI tools within the next 12 months (Alto survey, 250 professionals)
66% expect to use compliance and AML automation — the top priority
Large agencies: ~90% plan to adopt AI in 2026, vs only ~12% of smaller agencies using it extensively
However, 53% of letting agents have no intention of ever using AI (Inventory Base, June 2025)
72% cite "loss of human touch" as their greatest concern
76% received no formal training on AI or legal compliance
The Renters' Rights Act is the top compliance concern for 79% of agents, followed by EPC/energy rules (50%) and licensing (36%)
Looking ahead: AI adoption among retail landlords is forecast to grow from under 10% (2025) to over 70% by 2030 (GetGround forecast). As compliance complexity increases post-RRA, automation of tenancy agreements, compliance checks, and tenant referencing is expected to become industry standard.
06
Tenant referencing and fraud prevention
92% of landlords reference tenants before granting a tenancy
82% use professional referencing firms
Average turnaround: 3–5 working days (manual) vs under 24 hours (digital/automated)
Fraudulent applications increased 140% between 2022 and 2023, with AI-generated fake documents now a growing threat
Since May 2025, all letting agents are "relevant firms" under financial sanctions regulations, requiring enhanced AML checks
Right to Rent penalties: up to £20,000 for repeat offences
07
Landlord and agent sentiment
52% of landlords are considering exiting the market (NRLA, up from 47% in Oct 2024)
However, 14% more buy-to-let mortgages were issued in early 2026 vs early 2025 (UK Finance) — suggesting new entrants are replacing leavers
58,000+ new BTL mortgages approved in Q1 2025, up ~40% year-on-year
Available rental properties increased 3% in Q1 2026 (Rightmove)
Bank of England base rate: 3.75% (Q1 2026)
Average BTL yields: 3–5% in 2025, forecast to improve to 4–6% by 2030
What the data tells us
The private rented sector in 2026 is at a crossroads. The Renters Rights Act has delivered the most significant tenant protection reforms in a generation, but the data reveals several tensions:
Eviction numbers were already declining before the ban — Section 21 claims fell 17% in late 2025 — though a pre-ban surge in early 2026 complicated the picture.
Rent growth is cooling (3.5% — the lowest since 2022), but average rents remain at record levels and affordability pressures persist.
Deposit protection is robust (99% dispute-free rate), but the growing gap between average deposits and arrears leaves landlords exposed.
Technology adoption is split — large agencies are racing ahead while over half of smaller agents remain resistant, creating a two-speed market.
The sector is not shrinking — despite 52% of landlords considering exit, new BTL lending is up 40% and available properties increased 3% in early 2026.
08
Frequently asked questions
The Renters Rights Act 2025 received Royal Assent in October 2025 and came into full effect on 1 May 2026. The Act abolishes Section 21 no-fault evictions, converts all fixed-term tenancies to periodic tenancies, and introduces enhanced tenant protections including a new Private Rented Sector Database and mandatory landlord ombudsman.
Section 21 no-fault evictions were abolished on 1 May 2026. Landlords must now use Section 8 grounds for possession, which require a specific reason such as rent arrears, sale of the property, the landlord moving in, or anti-social behaviour. Notice periods for most grounds doubled from 2 to 4 months, and the mandatory arrears threshold increased from 2 to 3 months' rent.
In 2025 there were 28,112 Section 21 accelerated possession claims — the lowest since 2022. Between July 2024 and June 2025, 30,729 households received a Section 21 notice and 11,402 were evicted by bailiffs. Since the ban was first announced in April 2019, over 43,000 households have been evicted via no-fault eviction. The rate was declining through most of 2025 but saw a pre-ban surge in early 2026.
The average UK monthly private rent is £1,381 as of April 2026 (ONS Price Index of Private Rents). That's 3.5% annual growth — the lowest since March 2022. By region: England £1,438, Wales £834, Scotland £1,019, Northern Ireland £877. London saw the slowest growth (2.0%) and the North East the highest (6.5%).
The average deposit in England and Wales is £1,175 — the highest on record. Across 4.7 million protected deposits totalling £5.53 billion, only 1% end in a formal dispute. Cleaning is the most common dispute cause (54%), followed by damage (49%) and redecorating (31%).
52% of landlords say they are considering exiting (NRLA survey, up from 47% in October 2024). However, buy-to-let mortgage lending rose 14% in early 2026 vs 2025, available rental properties increased 3% in Q1 2026 (Rightmove), and 58,000+ new BTL mortgages were approved in Q1 2025 — suggesting new entrants are replacing those who leave.
Fines vary by regulation. Expired EICR certificates can result in fines up to £30,000 per property. EPC compliance fines reach £5,000. Gas safety breaches can cost up to £2,000 plus invalidated insurance. Deposit protection non-compliance can cost up to 3× the deposit amount. Right to Rent penalties are up to £10,000 per tenant. A 50-property portfolio has over 150 active expiry dates to track — making automation increasingly essential.
52% of estate and letting agents plan to adopt AI tools within 12 months, with 66% prioritising compliance and AML automation (Alto 2026). Large agencies are leading at ~90% adoption intent. However, 53% have no intention of using AI, and 72% cite loss of human touch as their main concern. The Renters Rights Act is the top compliance priority for 79% of agents.
Sources and methodology
All statistics are sourced from official government data and established industry bodies. Data retrieved June 2026. We endeavour to keep this page updated as new data is released.
Compiled and maintained by TenurAI. Journalists and researchers: please cite the original sources above, not this page. For corrections: hello@loopstack.co.uk.