Private Rented Sector predictions for agents, landlords, & tenants (2026)

After seemingly endless amendments, votes, and rounds of ping-pong, the Renters’ Rights Act (RRA) finally passed into law last year.

This means that 2026 will be one of the most critical years for the sector in decades, with the first major round of implementation coming on May 1. But how will it all play out?

In this blog, Goodlord's leadership team gives their takes on what tenants, landlords, and agents can expect. 

• Market predictions 
• Compliance prediction
• Letting agent predictions
• Landlord predictions
• Tenant predictions
• Conclusion

Market predictions 

William Reeve, CEO

In 2026, I think the UK PRS is set to experience a Big Bang moment, a regulatory or market shock as big as anything we’ve seen since the 2019 Tenant Fee Ban. Initially, the aftermath may feel quiet, leading some to say, “See? The doom-mongers were wrong.” But this is just the calm before the storm: it will take time for new processes, notice periods, and market adjustments to play out. Within 1–2 years, the full impact will be clear, and those early warnings will have been well-founded.

Rents are likely to keep rising this year, driven by a persistent imbalance between supply and demand, exacerbated by the unintended consequences of the RRA.  I foresee that the Government’s 1.5 million new homes target will slowly become ever less credible, cementing undersupply as a permanent challenge rather than a temporary problem.

In the wider economy, it looks like unemployment will hit its highest level in over a decade (around 5.5%), making tenant sentiment and income more fragile and rent arrears more likely. Agents and landlords will tighten referencing criteria and become increasingly sensitive to employment risk, although thankfully, Goodlord won’t need to start offering ‘AI unemployment protection’ just yet.

Technology promises, particularly AI, will remain tantalisingly close but largely incremental in the private rental sector: smarter document handling, faster communications, and minor efficiency gains, rather than the full-scale disruption some have predicted. Meanwhile, I believe we’ll see one of the notable CRMs change hands, possibly merging with a competitor, bringing consolidation rather than radical innovation to the market.

Finally, I think HMRC will soften its approach to Making Tax Digital, offering a grace period that relieves immediate pressure in response to bulging MP postbags. Taken together, these trends mean the PRS isn’t collapsing, but it is under strain. Landlords will be more cautious, tenants more stretched, and the ecosystem will move forward more slowly than many hoped, absorbing shocks and waiting for change that always seems just around the corner.

Tom Goodman, Managing Director of B2B

In my opinion, 2026 will be the year the PRS decisively reorders itself as the RRA thrums into life. With the Act live and operational, the market will move beyond speculation and into reality. The winners and losers will become clear not on May 1, but in the months that follow.

The dominant theme will be accelerated consolidation through professionalisation rather than withdrawal. Regulatory pressure, increased compliance complexity and sustained margin squeeze will make self-management far less attractive for many smaller and accidental landlords. As a result, a higher proportion of landlords will turn to agents to manage risk, compliance and operational burden on their behalf. The market will increasingly favour either scaled, systemised operators able to absorb regulatory cost efficiently, or focused specialists with a clear niche and value proposition. The traditional “generalist, low-margin” model will become progressively harder to sustain.

At the same time, a generational shift in landlord expectations will reshape agency relationships. New landlords entering the market are more digitally fluent, commercially minded, and data-driven. They expect transparency, proactive communication, and evidence-based advice as standard. Agencies still operating with legacy processes or reactive service models will struggle to attract and retain this group.

Despite early concerns, I think tenancies are likely to lengthen rather than shorten. As our 2025 State of the Lettings industry report shows, tenants prioritise stability and affordability over flexibility (73% of surveyed tenants won’t change when they serve notice after the move to periodic tenancies). Periodic tenancies will normalise longer stays, moving the UK closer to a European-style rental model focused on retention rather than churn. This will fundamentally change how agents demonstrate value, shifting emphasis from renewals to long-term asset and relationship management.

Rent increases are likely to become more frequent, not less. With fixed-term renewals removed, Section 13 rent reviews will become one of the few regular, formal touchpoints between agents and landlords. Landlords will increasingly expect proactive, structured rent reviews supported by credible market data. Agents unable to deliver disciplined, defensible rent strategies will find their value proposition challenged.

Crucially, 2026 will expose who has prepared properly. Agencies that invested early in training, Section 8 capability, Section 13 workflows, and clear landlord communication will enter the year with confidence and credibility. Those who delayed will spend much of 2026 firefighting.

Compliance predictions

Kerry Aldridge, Director of Compliance

As 2026 approaches, compliance requirements across the Private Rented Sector tighten, with regulators placing greater emphasis on transparency and consistency. Under the RRA, we’ll see higher penalties for lapses in documentation, property standards, and tenant communication, areas where many agents still struggle to keep pace.

Digital verification and reporting will play an even bigger role. Agents who haven’t yet modernised their compliance workflows may find the gap widening, as manual processes become increasingly risky and resource-heavy.

As firms embrace tools like Goodlord and adapt to more rigorous standards, I anticipate a noticeable uplift in operational quality across the sector. Agencies that invest early will be well placed to deliver a smoother, more reliable experience for landlords and tenants, strengthening both trust and competitiveness in a changing market.

Letting agent predictions 

Mouna Patel, Major Accounts Consultant

The ongoing rollout of the Renters Rights Act will completely reshape the Private Rented Sector through 2026. Beyond headline changes to tenancy structures, the real impact for agencies will be how they adapt revenue models and manage growing compliance demands.

From safety checks to transparency rules, agents will need to replace traditional renewal income with smarter service packages. Charging for services like automated compliance admin may become standard. Still, the bigger opportunity lies in offering value-led add-ons like rent and legal protection, compliance audits, and enhanced tenant communication tools. Even the most independent landlords may be persuaded to shift to fully managed services.

Upskilling teams will be just as important. Training staff on updated legal processes and digital record-keeping will help agencies stay compliant and deliver a more consistent service.

The agents who succeed in 2026 won’t just rely on more stock; they’ll focus on stronger margins, better conversion rates, broader third-party services, and technology that automates low-value tasks. Those who adapt fastest will turn regulatory change into commercial advantage.

Landlord predictions 

Emily Popple, Director of Landlord Experience

2026 is a pivotal year. With the implementation of the Renters' Rights Act, the margin for error narrows; for landlords and agents, getting it right is essential.

Because the stakes are so high, we’ll see the volume of commentary, interpretation and guidance explode. Information will be plentiful. For landlords and agents alike, navigating this noise will be critical; the source of guidance will matter as much as the guidance itself, as poor interpretation carries real operational risk.

Risk aversion will increasingly shape landlord behaviour, driving a focus on forensic tenant vetting, protection of rent and assets, and defensible compliance processes. The role of the agent will evolve away from simply securing a tenant and towards actively protecting the landlord in a more exposed regulatory environment.

Quietly, other pressures will reshape the diary. We expect the new Home Energy Model to redefine energy scoring this year, finally offering the clarity needed for future MEES deadlines. This moves landlords into a 'planning phase', assessing portfolios against new metrics and working out how to execute what they need to. Simultaneously, Making Tax Digital adds a new layer of administrative rigour. These changes may not dominate headlines, but they materially affect operations.

We also expect specific disruption in the student sector. With the traditional 'sign in November' cycle broken for private landlords but remaining for Purpose Built Student Accommodation, a timing gap opens for students needing affordable homes. We may see some consolidation in the HMO sector as larger operators buy out smaller landlords who can't stomach this new void risk, but it’s likely that this year, landlords will wait it out to see what happens.

Overall, 2026 will not be about new legislation, but about execution. The landlords and agents who succeed will be those who prioritise quality information, clear planning, and professional support as the sector adjusts to its new normal.

Tenant predictions

Rik Smith, Director of Consumer Partnerships

2026 will be the year when the “infrastructure” of letting (energy, connectivity, and compliance) moves from the background and causes some frontline friction. 

After years of volatility, 2026 is set to bring welcome relief on headline energy prices, with forecasts indicating a 6.1% fall in the April price cap. This improvement is a structural shift driven by policy, as the removal of schemes like ECO and the transfer of other green levies into general taxation will strip around £150 of hidden costs from household bills. However, changes to standing charges will reshape who benefits most, with new low standing-charge tariffs favouring lower-usage households. For tenants, this should improve affordability and reduce the risk of arrears. However, the complexity of these changes makes Goodlord’s partnership with OVO vital as we provide some much-needed clarity in a confusing market.

As the new EPC assessment model begins to replace the old methodology, properties might see their ratings change for the better or worse without a single roll of insulation being laid. The shift in how energy efficiency will be measured is leaning towards electrification (pro-heat pumps), and away from gas heating. Already, homes heated by LPG and oil are enormously penalised in the EPC. Properties will see their ratings change at the point their EPC needs replacing without any alterations, which could create a short-notice blocker to reletting the property if it fails to meet the new requirements. 

The long wait on EPC reform will come to a conclusion, as I expect the Government’s response to the 2025 MEES consultation to confirm EPC C as the minimum standard for all rental properties by 2030. 

The real impact, however, will be felt much sooner, as an anticipated £15,000 per-property cost cap forces landlords to assess the viability of their portfolios as early as 2028. 

This uncertainty will increase demand for expert guidance, positioning agents as essential compliance partners in helping landlords navigate both the financial and regulatory risks ahead.

The expansion of the copper switch-off will gather pace in 2026, as broadband “stop sell” areas widen ahead of the full withdrawal of copper-based telephone services in January 2027, making Fibre-to-the-Premises the default rather than a premium option for more households.

As this acceleration continues, agents will face growing operational friction at move-in, as tenants can no longer simply activate an existing line and FTTP installations often require physical works and explicit landlord consent. Longer installation times will increase the risk of connectivity gaps, particularly in older properties, leaving some tenants temporarily offline.

As plug-and-play broadband becomes a thing of the past, managing connectivity expectations and permissions earlier in the lettings process will be critical to delivering a smooth tenancy experience.

Conclusion

Across every corner of the sector, the message for 2026 is strikingly consistent: this is not a year of theory or speculation, but one of execution. With the Renters’ Rights Act now in effect, the PRS moves from anticipating change to living with it. The immediate aftermath may feel uneven, but the long-term direction is clear.

Professionalisation, consolidation, and compliance-led operations will define the winners. Agents are being pulled towards deeper, more defensible value propositions; landlords towards risk management, planning, and trusted advice; and tenants towards more extended stays, clearer rights, and better-managed homes. Technology will help, but it won’t be a silver bullet; success will come from disciplined processes, well-trained teams, and credible data.

At the same time, regulatory change does not exist in isolation. Energy reform, tax digitisation, connectivity upgrades, and shifting economic conditions will all add layers of operational pressure. For those who rely on outdated models or delay adaptation, 2026 will feel unforgiving. Those who prepared early, invested wisely, and embraced their role as professional partners will have a year to strengthen trust, margins, and long-term resilience.