The Renters' Rights Act (RRA) became law on the 1st May, fundamentally changing the lettings market by moving most fixed-term tenancies to periodic (rolling) tenancies and limiting rent increases to a maximum of once per year. There was a feeling across our nine offices that April was quieter than usual - as if renters and landlords were ‘bracing for impact’. In fact, there has been less of an impact than anticipated; as the 1st May deadline came and went, market activity picked up again with tenants moving, applicants searching, and landlords listing properties. Despite new regulations, the fundamentals of Oxfordshire’s lettings market remain the same: demand is consistent while supply lags.
REALISTIC RENT SETTING
The huge hikes of the pandemic have disappeared – as predicted – and been replaced with 3-5% increases more aligned with pre-2020 rates. The number of homes available to rent remains below pre-pandemic levels1 but has improved over the last year or two. As such, rent setting needs to be realistic based on the property type, size, location and level of demand. Tenants will only pay what they think is a fair price and - as reported by our offices - if the price is set correctly the property will get huge interest but aim too high and it could sit on the market. For example, a 1-bedroom coach house in Leafield near Witney at £9952 had plenty of enquiries and six viewings resulting in three offers. Similarly, a 2-bedroom barn conversion in Charlbury at £1,475 (property below) had seven viewings resulting in seven offers.
EVIDENCING RENTS
Prior to this Act, rent increases were often written into fixed-term tenancy agreements. Now rents can only be increased once a year via a Section 13 notice. If a tenant believes the proposed rent increase exceeds market rate, they can challenge this at the First-tier Tribunal (FTT). A good agent with local expertise will be able to propose – and evidence – an accurate market rent for your property. While it is possible to price at the top end of a bracket for a premium property, it’s important not to push above market rents to a level that is unjustifiable.
MORE (INDECISIVE) APPLICANTS
With the abolition of fixed-term tenancies, tenants have the flexibility to keep an eye on the market, just in case something comes up that tempts them to move. This could explain why we have had the highest number of applicants register a property search in June for five years (see graph below). However, this flexibility means that they aren’t rushed to make a decision if they have not yet served notice at their current property and they can afford to wait. Our Woodstock office received five applications on a 3-bedroom house in Yarnton at £1750 and, unusually, the four applicants who did not get the property seemed unphased. Indeed, several offices reported applicants viewing or even offering on properties and then going quiet (and in a couple of cases, they didn’t even turn up to the viewing)!
TENANTS SERVING NOTICE
The volume of tenants serving two months’ notice to leave following the implementation of the RRA was broadly as we had anticipated, and for typical reasons: relocating, upsizing, downsizing, or buying. It has long been claimed that moving house is one of life’s most stressful events, so we do not anticipate a sudden increase in tenants ending their tenancy simply because they can.
PRESENTATION AS A PRIORITY
If tenants are continually keeping an eye on the market, property condition and presentation is more important than ever. Landlords should make use of void periods to carry out work at their property, whether that is new flooring, redecoration, making energy efficiency improvements or upgrading kitchens or bathrooms, to ensure it remains appealing to tenants. Across our offices strong rents have been achieved for quality properties this quarter. For example, a 2-bedroom apartment in Summertown at £1,900 which let within a week of being listed or a 5-bedroom house in Bicester at £2,500 which the landlord is letting out while they are relocating (main image).
GUARANTOR SERVICES
It is no longer possible to accept more than one month’s rent before the tenancy starts, which is a challenge for renters coming from overseas who will not pass traditional referencing criteria. In Oxford, premium 1-bedroom apartments would historically let to overseas students, and outside of the city family homes would often be occupied by families relocating to the area for schooling. Guarantor services can help, and it’s worth talking to your agent about these.
LETTING PROPERTIES THAT HAVEN’T SOLD
A slower sales market has seen some landlords return to letting as they aren’t able to achieve the sales price required. For example, a 4-bedroom house in Witney at £2,950 let within one week when it came back to the rental market (property below) and a 2-bedroom house in Bicester at £1,500 let quickly to a single professional tenant. If selling is something you are considering (but is not a necessity) then it would be wise to wait until your tenant serves notice before trying to sell as you will be in a better position to relet if required. If you serve a Ground 1A notice to sell and you fail to do so, you cannot relet the property for 12 months, meaning you would have to sell – possibly at a reduced price in a slower market.
RESHUFFLING THE LANDLORD MARKET
As well as failed sales, new listings this quarter have come from a range of landlords. Some are switching to a managed service in light of the new legislation, some are consolidating their portfolio with one agent, some are relocating or going travelling, and some are considering long lets instead of their current holiday lets. One interesting trend has been a small lift in new investors and existing landlords expanding their portfolios. These have brought welcome stock to the market and have let quickly, for example a 1-bedroom house in Bicester at £1,250 which let off-market to a single professional.
SHORT LETS
Across the county we have seen an increase in the number of landlords considering short lets over long lets by way of circumventing the RRA. Short lets are certainly a great option for some landlords, but it would be wrong to think it’s an easy way out of the new legislation as they have their own complexities and regulations to comply with. Speak to us about your property for tailored advice on what is best for you.
JUST BECAUSE THEY CAN DOESN’T MEAN THEY WILL
Landlords that look after their tenants and maintain their properties should not fear this new legislation. The changes will largely affect processes; if you provide a quality property and the tenant is happy, they will stay. Frequently moving house or getting a pet is not without cost or responsibility – tenants are not necessarily going to do it just because they can.
1. Zoopla Rental Market Report, June 2026
2. All rents stated are marketing rents and per calendar month
