Barclays has issued a welcome update for renters following the implementation of new rights introduced by the Labour Party government. The bank, which has branches in Birmingham, reports that six in ten tenants say the Renters' Rights Act improves their housing protections and conditions.
Rising Awareness Among Tenants
Awareness of the Renters' Rights Act 2025 has increased significantly among tenants, from 19 per cent in October after the bill passed to 60 per cent when it came into effect. This marks a substantial shift in tenant knowledge and engagement with their rights.
According to Barclays' research, 19 per cent of renters are now more likely to remain in their current property. However, 45 per cent express concern about the legislation's long-term impact on rental supply and costs.
Impact on Homeowners and Investors
For homeowners, upfront costs continue to deter further investment. Second-home buyers need an average of £86,000 for a deposit, tax, and associated expenses. Meanwhile, three-quarters of Baby Boomers say they do not plan to use their property to fund retirement, and 31 per cent view their home as a legacy for family rather than a financial asset.
Interestingly, over-60s buying new property still seek larger family homes. Barclays mortgage data shows that 56.2 per cent of purchases by this age group in the last year were detached or semi-detached houses.
Barclays Property Insights
The Barclays Property Insights report analyses proprietary mortgage data alongside consumer research to uncover key trends shaping the UK housing market. The findings highlight the complex interplay between tenant protections, homeowner behaviour, and market dynamics.
Expert Commentary
Jatin Patel, Head of Mortgages, Savings and Insurance at Barclays, said: "As deposit challenges persist, the measures of the Renters' Rights Act to curb steep rent increases could give tenants more scope to save, and in turn widen access to the property ladder. However, the longer-term impacts on rental housing remain to be seen, as homeowners weigh up investment in bricks and mortar against other asset classes."
Patel added: "For most, property is about far more than finances. It provides stability and plays a key role in family legacy, and many retirees do not need to supplement their income through property. 'Right-sizing' still has an important part to play in unlocking housing supply, but it will only gain traction if there are clear and meaningful incentives."
Julien Lafargue, Chief Market Strategist at Barclays, commented: "The interest rate environment remains challenging, with domestic political uncertainty compounded with ongoing geopolitical tensions in the Middle East. Even so, the UK economy continues to demonstrate resilience, suggesting that once these headwinds ease, conditions should improve."
