What the Renters Reform Act means for first time buyers and Shared Ownership purchasers

The Renters Reform Act, which will commence on May 1st 2026, represents one of the most significant overhauls of the UK’s private rental sector in recent years. While its main focus is on strengthening tenant rights and reforming landlord obligations, its impact will extend well beyond the rental market.

For prospective homebuyers, including first time buyers and those considering Shared Ownership, these changes are already influencing affordability, housing supply, and the overall buying process. Understanding these wider effects is essential when planning your move onto the property ladder.

A more stable but increasingly expensive rental experience

For many prospective buyers, renting remains a necessary step before purchasing. The Renters Reform Act aims to provide tenants with greater security, including the removal of no-fault evictions and the transition from fixed-term agreements to periodic tenancies that continue on a rolling basis.

Landlords will also face tighter restrictions on regaining possession. In most cases, they will not be able to seek possession within the first 12 months of a tenancy unless specific legal grounds apply. After that point, possession can only be sought using defined statutory grounds, such as selling the property or moving in, and stricter notice requirements must be followed.

While these changes are designed to offer greater stability, the market is already responding in ways that directly affect prospective buyers.

A growing number of landlords are choosing to sell their properties, which is reducing the supply of rental homes. At the same time, demand remains high. This imbalance is pushing rents upwards, not only because some landlords are increasing rents in response to regulatory change, but also due to basic supply and demand pressures.

This tightening rental market is making it more difficult for tenants to save. Higher monthly costs reduce the ability to build a deposit, while fewer available properties can limit choice and flexibility.

Recent research from Share to Buy highlights the scale of this shift. Of 2,440 people surveyed, 82% said they are now considering buying due to rising rents and a lack of available properties. Many reported that renting is taking up an increasing proportion of their income, with a significant number spending between 30%-40% of their earnings on housing.

For prospective buyers, this means that while tenant protections are improving, the financial pressure of renting may accelerate the decision to buy.

More choice emerging for buyers

As more landlords exit the rental market, there is a clear increase in the number of properties being offered for sale. According to Rightmove, listings have reached an 11-year high. Many of these properties are smaller homes and flats, which are typically well-suited to first time buyers.

This increase in supply can create more choice and, in some cases, greater negotiating power. Buyers who may previously have faced limited options are now seeing a broader range of properties come to market.

The wider economic picture remains important. Interest rates are still relatively high, and expected reductions have been delayed due to ongoing economic uncertainty. However, this also provides clarity. Buyers can now assess affordability based on current lending conditions rather than relying on future rate changes.

In some cases, a higher volume of available properties may create opportunities to secure better value, particularly where sellers are motivated or where former rental properties are entering the market in greater numbers.

Buying a property with tenants in place

An important practical implication for prospective buyers is the increasing number of properties being sold with tenants still in occupation.

With the removal of no-fault evictions and the introduction of periodic tenancies, it may take longer for sellers to regain possession of a property. This can affect transaction timelines and, in some cases, whether a mortgage lender is willing to proceed, as many lenders require vacant possession on completion.

Buyers should therefore establish early in the process whether a property is tenanted and what steps have been taken to secure possession.

There may also be a wider impact on transaction chains. Where possession is delayed, this can slow down the entire process and introduce uncertainty around completion dates.

Where a property is tenanted, early legal advice is essential. Understanding the position from the outset can help avoid delays and ensure the transaction progresses as smoothly as possible.

Key considerations for buyers of Shared Ownership properties

The Renters Reform Act also has important implications for Shared Ownership buyers, particularly in relation to flexibility and long-term planning.

Shared Ownership properties are intended for owner occupation, and the reforms are likely to reinforce this by making it more difficult to sublet. Permission is usually only granted in limited circumstances, and with the move to periodic tenancies, regaining possession may take longer if a property is let out.

At the same time, Shared Ownership is moving closer to a more traditional model of homeownership. Leases will be treated more like long leases, giving buyers greater legal security and stronger protection against losing their home quickly. This means there is a more structured legal process before possession can take place, providing additional time to address any financial issues.

The reforms do not change the ability to staircase, but they do emphasise the importance of planning ahead. As buyers increase their share, their level of control increases, and their rental element reduces. Once full ownership is reached, the property can be sold on the open market without Shared Ownership restrictions.

For prospective buyers, this means Shared Ownership remains an attractive route into the market, but it is best suited to those with longer-term intentions rather than those seeking flexibility.

Conclusion

The Renters Reform Act reflects a wider shift towards greater regulation across the housing sector, and its impact on prospective homebuyers will become clearer in the second half of this year. However, rising rents, reduced rental supply, and an increase in properties coming to market are already reshaping both availability and buying behaviour.

Prospective buyers will need to navigate new practical and legal considerations, particularly when purchasing former rental properties or exploring Shared Ownership. Being well-informed and seeking early legal advice can make a significant difference, placing buyers in a stronger position to take advantage of the opportunities this changing market presents.

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If you are planning to buy and would like a free conveyancing estimate for a Shared Ownership property or your first home, our staff would be happy to help. Visit our page here to get a free estimate.

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With offices across Essex and beyond, including Basildon, Ongar, Rayleigh, London, Wickford, Harlow and Frinton-on-Sea, PCS Legal supports home movers, first time buyers and Shared Ownership purchasers across the region and throughout England and Wales.

If you are buying your first home, you can also learn more about our first time buyer conveyancing services here.

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