An agency chief says the Renters Rights Act may trigger some rental property sales early this year.

And he fears these could be at “distorted” prices which could in turn “confuse a market recovery” in the sales arena. 

However Jon Byers, founder of London agency Anderson Rose, says he believes any such sell-off will be short lived.

In a preview of the market in 2026 he says: “The one concern is that, with the Renters Rights Act due to come into law in May, there might be a number of landlords who try to sell in the first quarter of the year. This will increase supply, potentially at distorted prices, which could confuse a market recovery.  

“However, with so few forced landlord sellers, we expect that to be very short lived. We would argue that there is little reason to sell now if you are a landlord unless you are one of the landlords who bought in the 90s when buy to let was incentivised and you are now cashing in for your retirement. 

“For all others, we are at the bottom of the cycle and a professional lettings agency can help you cope with the Renters Rights Act while you wait for your asset to appreciate again. 

“With the end of fixed term tenancies, whilst tenants are being given more flexibility, if a property is well-maintained, well-managed and well prepared for the start of a tenancy then we expect tenancies to trend longer because of the absence of finite terms or renewal negotiations, whilst rental values are still expected to grow at a healthy level.” 

Byers continues that after stagnation in the sales market later last year, in the months leading up to November’s Budget, he is optimistic about 2026.

And he comments: “Going into this new year all agents should have a spring in their step.”

The economy is in better shape than the government anticipated and he anticipates that will trigger buyers to become more active.

He admits that with prices in central London nearly 30% lower than in 2016, affordability in that location at least is good.