Research published in April 2026 by Goodlord, surveying 2,650 letting agents, landlords and tenants (via Goodlord's Is Renting Broken? report), lays bare just how far apart the three groups are as the Renters' Rights Act (RRA) came into force on 1 May 2026. For HMO landlords the stakes are higher than for most: multi-tenant properties sit at the intersection of every fault line the research exposes.
Agents Drowning in Admin, Tenants Not Feeling the Benefit
The survey found that one in five letting agents (20%) identify administrative workload as their single biggest operational bottleneck. More than three quarters (76%) say time spent on admin is actively limiting their ability to grow, with property maintenance management topping the list of time drains (Goodlord, April 2026).
Tenants, though, are not feeling the benefit of all that effort. More than a third (37%) reported frustration with poor communication. The most common complaints were damp and mould (25% of tenants), general maintenance (22%) and plumbing issues (21%) - the exact problems that generate the most admin for agents in the first place.
For HMO landlords this loop is more acute. A property with five or six tenants produces five or six sets of maintenance requests, five or six rent accounts, and five or six relationships to manage. If your agent is already at capacity, that admin burden falls back on you. Use our HMO valuation calculator to sense-check whether your current yield still works if you need to bring management in-house or switch agents.
Landlords Pulling Back as Legislation Bites
The numbers on the landlord side are stark. 82% of landlords surveyed said they are concerned about the RRA's impact. 49% are planning to sell or reduce their portfolios within 12 months. Just 2% plan to grow (Goodlord, April 2026). High fees and weak value perception drove 59% of landlord frustration - but legislation changes were the most cited reason among those specifically considering selling.
This matters for the sector beyond individual portfolios. Fewer landlords means fewer properties. For tenants that translates to higher rents and longer searches - the opposite of what the RRA intends. The disconnect between what each group needs from the legislation is the core tension the Goodlord research surfaces.
For HMO landlords considering their position, the stress test calculator is worth running before any decision. A property that passes at current rates may not pass if voids lengthen while possession cases work through an already stretched court system.
The HMO-Specific Pressure Points Under the RRA
The abolition of Section 21 (the 'no-fault' eviction notice) under the Renters' Rights Act from 1 May 2026 changes the calculus for every landlord. But HMO operators face two specific complications that standard buy-to-let landlords do not.
First, student HMOs. Ground 4A is the new mandatory possession ground introduced by the RRA for properties let to full-time students. It allows possession so the property can be re-let to a new student group. The standard notice period under Ground 4A is four months, and it can only take effect between 1 June and 30 September. For tenancies signed before 1 May 2026, landlords had a narrow transitional window: serve a written statement to every tenant by 31 May 2026 and the notice period shortens to two months (Trowers & Hamlins, February 2026). Miss that deadline and you revert to four months - which risks missing the academic cycle entirely.
Second, the court system. With possession now requiring a Section 8 ground for all tenancies, multi-tenant HMO cases are more complex to run. Rent arrears must now reach three months before a mandatory ground applies, up from two months under the previous rules. Add court processing time and a landlord could realistically be without rental income for up to six months in a contested case (NRLA, 2026). With five or six rent accounts in a single HMO, even one tenant in arrears creates that exposure.
Article 4 (local authority direction restricting permitted development rights) adds a further layer in many areas. Check your licence - if your HMO sits in an Article 4 direction zone, local authorities have additional tools to scrutinise compliance, and any possession dispute that flags a licensing issue could complicate your case. For a deeper look at how to structure your portfolio around these pressures, the property investment strategies hub covers the options in detail.
Where Stakeholder Divisions Leave the Market
The Goodlord research does not suggest any of the three groups - agents, landlords, tenants - are acting in bad faith. They are responding rationally to different sets of incentives. Agents are capacity-constrained. Landlords are risk-averse in the face of legislative change. Tenants want better maintenance and clearer communication.
The RRA addresses tenant security directly. It does less to resolve the operational capacity problem or the landlord exit incentive. If the 49% of landlords considering selling do so, supply contracts, rents rise, and the Act's stated goals become harder to achieve. That is the political and commercial tension no single piece of legislation has yet resolved. You can explore the free resources hub for tools to assess how these changes affect your specific position, and the business and systems hub for practical ways to reduce your administrative load before it compounds.
Key Takeaways
82% of landlords are concerned about the RRA; 49% plan to sell or reduce portfolios within 12 months (Goodlord, April 2026).
Section 21 (the 'no-fault' eviction notice) abolition under the Renters' Rights Act is live from 1 May 2026 - no new notices can be served.
Student HMO landlords using Ground 4A face a four-month notice period; the two-month transitional window closed 31 May 2026.
Rent arrears must reach three months before a mandatory Ground 8 applies under the RRA, up from two months.
76% of agents say admin is limiting growth; 37% of tenants report frustration with communication - the gap between effort and experience is the sector's defining problem right now.
