“To protect asset value, we must rigorously demonstrate the BTR premium”

The full implementation of the Renters’ Rights Act in May 2026 marks one of the most significant shifts in the UK residential rental market in decades. For build-to-rent operators in particular, it will fundamentally change how tenancies are managed, how rents are set and how evidence is gathered. Understanding the contrast between the pre- and post-act environments is critical to navigating this transition successfully.

Under the current framework, the market largely operates on a 12-month assured shorthold tenancy cycle. This structure gives us relative predictability. We manage risk and income through planning, supported by detailed tenant data and letting price graphs. These allow us to extend terms strategically, ensuring move-outs do not cluster during traditionally weaker market periods like December and January.

Pricing decisions are similarly proactive. We set target rent increases in advance, queueing them within our technology systems to appear as the headline asking rent for site teams. To save landlords time we can auto-accept offers above the headline rent and viewing feedback is collected so relevant feedback can influence the design of future developments. We can also use tools to extend tenancies to avoid seasonal downturns.

However, this approach is always tempered by a delicate balance between affordability and churn. Pushing rents materially above competitors or beyond tenant affordability can quickly erode returns through void losses, council tax exposure and utility costs. As a result, while new lets may be priced to the full extent of the market, renewal increases are often moderated to protect long-term income, build resident satisfaction and reduce churn. After all the landlord gains from not having say a week’s void, so some of this gain is shared with the tenants renewing.

In this pre-act world, rental pricing relies heavily on operator expertise and market insight, much of which remains internal. Rent levels are justified by the overall value proposition – the home, amenities and community – rather than by formalised comparable evidence.

Two-tier market

From May, the act introduces a fundamentally different assumption: that every tenancy can end, with tenants able to give two months’ notice at any point. While this provides greater flexibility for residents, it also changes the dynamics of demand.

One likely outcome is the rise of the “winter rent shopper”. Tenants may choose to exercise their notice during historically quieter periods to secure accommodation at a seasonally lower rent, perhaps even within the same building.

Crucially, rent increases will move onto a far more evidence-led footing. Rather than relying on tools to mitigate seasonal downturns, operator judgement and tenant perception of value, rent reviews will need to be justified through transparent comparables. Discussions at the renewal stage will increasingly be supported by data, and where agreement cannot be reached, the Section 13 process will require the open sharing of evidence to withstand tribunal scrutiny.

This evidence will need to be sophisticated. Comparables will not simply be “like-for-like” on size or location but weighted for factors such as floor height, aspect, sun path, unit age, energy efficiency, internet connectivity and amenity space. The responsiveness of an institutional landlord will also form part of the overall assessment – but will have to be proven.

On the flipside landlords may well be penalised for operating a two-tier market, one rise for new lets and one rise for renewals – given a lower rent increase for those renewing could be used against the landlord as evidence for a Section 13 rent review. Landlords may well need to switch to gifts, rent free or other incentives.

Real-time shifts

This brings us to a critical area for BTR operators. There is a risk that a tribunal member, or someone unfamiliar with the nuances of the sector, views a unit in a BTR development which offers lower bills, curated living where you can work from home and can meet up and go out with friends, as just another box comparable to a generic private rented sector flat next door. BTR most emphatically is not.

To protect asset value, we must rigorously demonstrate the BTR premium. This is why Jennet Siebrits, formerly head of research at CBRE for over 20 years, is leading our efforts at Ringley to model BTR against nearby PRS stock. Jennet’s team is preparing to publish a dedicated BTR Rent Premium Index later in 2026. The call to action for all inside the BTR sector is that we cannot allow a tribunal to compare apples with pears simply because our paperwork is insufficient.

We are already using data from platforms like Love to Rent, Realeyes, and Rightmove, while negotiating access to referencing agency data. We are tracking all UK BTR assets to monitor real-time shifts. Our systems are building the evidence packets of tomorrow, today.

Any legislative sea change is a journey. However, those relying on disjointed third-party tech stacks may struggle to gather the intelligence required to justify value. As an operator with a genuine end-to-end platform, we are ready to champion these changes.