Date Published 08 June 2026
When the Renters' Rights Act came into force on 1 May 2026, the intention was clear: provide greater security for tenants and create a fairer private rented sector.
While many of the changes are designed to improve tenant protections, there are already signs that some of the reforms may be having an unintended side effect – encouraging more landlords to leave the market altogether.
And here on the South Coast, that's something we are watching very closely.
Fewer Landlords, Fewer Homes
Over the past few years, landlords have faced a growing list of challenges.
Higher mortgage rates, additional Stamp Duty charges, the removal of mortgage interest tax relief, increasing compliance requirements, and now the introduction of the Renters' Rights Act have all added pressure to property investment.
As a result, many landlords are reassessing whether residential lettings still fit their long-term plans.
Locally, we continue to see a steady stream of landlords choosing to sell properties that have been rented for many years. In some cases, these are accidental landlords reaching retirement. In others, investors simply feel the sector has become more complex and costly to operate.
The issue is that every rental property sold to an owner-occupier removes another home from the rental market.
Demand in Dorset Remains Strong
Despite concerns about affordability, tenant demand across Poole, Bournemouth and Christchurch remains exceptionally resilient.
At Lewis Dean, we regularly see multiple enquiries within the first few days of marketing a well-presented property. Good quality family homes are often let quickly, particularly in popular areas such as Upton, Canford Heath, Hamworthy, Lytchett Matravers and Broadstone.
The simple reality is that demand continues to outstrip supply.
With fewer rental properties available and a growing population across Dorset, competition between tenants remains high.
What Does This Mean for Rents?
Basic economics tells us that when supply falls and demand remains strong, prices tend to rise.
Although rental growth has moderated compared to the sharp increases seen during 2022 and 2023, average rents across Dorset remain significantly higher than pre-pandemic levels.
If landlord numbers continue to decline following the Renters' Rights Act, it is likely that upward pressure on rents will remain for some time.
Ironically, legislation designed to improve outcomes for tenants could result in a shortage of available homes, making it harder and more expensive for prospective tenants to find somewhere suitable to live.
The Future EPC Challenge
Looking ahead, landlords also have one eye on potential future EPC regulations.
While the Government has not yet confirmed final details, proposals requiring many rental properties to achieve an EPC rating of C could involve substantial investment for some landlords, particularly those with older housing stock.
For some investors, that may be another factor influencing whether they remain in the sector.
Why Professional Management Matters More Than Ever
The reality is that the private rented sector is changing rapidly.
For landlords who remain invested in property, professional management has never been more important. Keeping up with legislation, compliance requirements, tenancy management and documentation is becoming increasingly complex.
The good news is that well-managed properties in desirable locations continue to perform strongly, with quality tenants still actively searching for homes across Poole and the surrounding areas.
The landlords who stay informed, plan ahead and adapt to the changes are likely to be best placed to benefit from the continuing demand for rental accommodation.
Our View
At Lewis Dean, we don't believe the sky is falling in.
Yes, the Renters' Rights Act represents the biggest change to the private rented sector in a generation. But good landlords who provide quality homes and take professional advice can still achieve excellent long-term returns.
The challenge isn't finding tenants.
The challenge is navigating the growing complexity of the legislation while protecting your investment.
That's exactly where we can help.
If you'd like to discuss how the Renters' Rights Act affects your property, or you'd like a review of your current rental strategy, we'd be delighted to have a chat.
