The Renters’ Rights Act could create a more structured rental market that benefits professional operators, according to new analysis from property management firm Rushbrook and Rathbone.
The research found that despite ongoing regulatory pressure, average rental income per property has risen from £9,860 to £11,352 over the past year, while average yields have edged up from 6.3% to 6.4%.
Arrears fall as smaller landlords exit
The proportion of landlords reporting rental arrears has fallen from 29% to 27%, suggesting improving tenant stability. However, average portfolio sizes have declined from 7.3 to 6.6 properties, with a greater proportion of landlords selling rather than acquiring additional stock.
Rushbrook and Rathbone identified five ways the RRA could benefit professional landlords operating well-managed, compliant portfolios.
Rushbrook and Rathbone said: “While the legislation has prompted some landlords to leave the market, those who remain are operating portfolios with stronger yields, higher rental income, and fewer arrears. The data suggests a shift toward a more professionalised rental sector.”
The analysis highlights that the legislation’s complexity is driving out smaller, less committed investors while creating opportunities for those with the resources to adapt. Larger portfolio operators with established compliance systems face lower per-unit costs in meeting new requirements.
Consolidation trend accelerates
This follows Residential Landlord’s March coverage of small landlords’ declining market share, which showed a similar consolidation pattern across the private rented sector. The latest data reinforces the shift toward larger, more established operators.
The firm noted that reduced competition from exiting landlords, combined with tenant demand that remains strong, has enabled remaining investors to command higher rents and achieve better yields.
For buy-to-let investors considering their position, the data suggests that those with compliant portfolios and efficient operations may be well-positioned to benefit from the changing regulatory landscape.
Industry body Propertymark has previously noted similar trends, with professional landlords increasingly viewing regulation as a competitive advantage rather than solely a burden.
Opinion
This analysis offers a counterpoint to the prevailing narrative of RRA doom. Yes, smaller landlords are exiting – but for those who remain, the fundamentals look more favourable: higher rents, better yields, fewer arrears. The question is whether this professionalisation improves the sector or simply concentrates ownership in fewer hands, reducing the diversity that has historically characterised British buy-to-let.
