Renters’ Rights Act Should Not Put Investors Off HMOs

March 17, 2026

The Renters’ Rights Act has certainly changed the conversation around HMO investment. Some landlords have reacted with uncertainty. We have not.

Right now, there is a lot of panic, doom and gloom, and scaremongering around these changes. That always happens when the property sector faces reform. Even so, property continues to come out on top. Good quality housing remains essential, and professionally run HMOs still have an important place in the market.

For over 34 years, we have developed and managed HMO properties. During that time, we have seen just about every regulatory shift the sector can throw at landlords. Rules change, standards rise, and enforcement tightens. Strong operators adapt and carry on. Weak operators struggle.

That is exactly why the Renters’ Rights Act should not put serious investors off HMOs.

The landlords most likely to sell are not the strongest operators

The landlords most worried by these reforms are usually the ones who were already on borrowed time.

That often means self-managing landlords who are stretched too thin, rogue landlords who never cared enough about standards, or tired landlords who have fallen behind on compliance, communication, maintenance, and tenant care. A well-run HMO business should never rely on shortcuts, weak systems, or poor treatment of tenants.

Instead, it should rest on quality housing, strong management, consistent compliance, and a proper long-term operational model.

Unfortunately, as more landlords decide to sell up, many tenants will face fewer housing options. Some may even lose homes that suit their needs. That is sad, and it reflects the damage poor quality landlords can cause when they exit the sector.

At the same time, this shift creates an opportunity.

Professionally developed, professionally managed HMO properties can step in and provide the type of housing working tenants actually need. The answer is not fewer HMOs. The answer is better HMOs, run by people who know exactly what they are doing.

HMOs need to be treated as a critical regulated housing sector

The market needs to treat HMOs with the seriousness they deserve.

HMOs are not a playset for investors to experiment with and try to make work. They are homes. Real people live in them. Real people rely on them to be safe, compliant, well managed, and professionally maintained. When inexperienced or careless landlords cut corners, they do not just make a poor investment decision, they play with people’s lives.

That is why we strongly support regulation and tenant protection.

In our view, HMOs are a critical regulated housing sector. They play an essential role in housing working people, key staff, mobile professionals, and those who need flexible, affordable accommodation in strong employment areas. That responsibility should never sit in the hands of landlords who do not care, do not understand the sector, or do not have the infrastructure to manage it properly.

The biggest practical change is the end of fixed terms

In all fairness, the biggest headline change is the move away from fixed-term tenancies.

Landlords who relied on fixed terms as a crutch may see that as a major shake-up. Professional HMO managers can handle it.

Strong HMO performance has never come from trapping tenants into agreements they do not want to be in. It comes from offering a well-located, well-maintained, well-managed home that tenants actually want to stay in.

Good operators earn retention. They do not force it.

Much of what the Act introduces is already standard practice for good operators

A lot of the noise around the Renters’ Rights Act focuses on rent increases, bidding wars, and broader tenant protections.

From our point of view, much of that simply reflects how landlords should have operated all along.

We did not, and never will, keep hiking rents more than once a year.

We would never put tenants into bidding wars.

Many of the measures being discussed do not really affect our investments because we already worked that way before any legislation told us to. That is what makes a good managing agent. Anyone who does not care about their tenants will eventually have a nasty experience in investment.

The landlords who will notice the biggest change are the ones who were not running their investments properly in the first place.

Good regulation is not the enemy of good investment

We strongly support regulation and tenant protection because good regulation helps professional operators stand out.

A good managing agent should care about the tenant experience, property condition, legal compliance, safety, and communication. None of those should feel like burdens. They are the basic standard.

The market is moving away from amateurism and toward professionalism. That benefits tenants. It also benefits serious investors.

Doing it right when nobody is watching matters more than ever

One of the sayings we have always believed in is this:

Do it right even when nobody is watching.

That mindset matters in HMO investment more than ever.

We have always managed to achieve or exceed regulatory requirements on HMO properties. We did not start working that way because of one Act or one reform cycle. We have always worked like this. That is what makes our HMO investments futureproof.

When you develop and manage HMOs properly, regulation becomes something you prepare for, not something you panic about.

In-house control creates accountability

Everything we do is in-house, from development to management.

That matters because we rely on nobody else and hold ourselves fully accountable. There is no disconnect between the people who create the asset and the people who operate it day to day. That creates consistency, oversight, and proper responsibility from start to finish.

For investors, that is a major strength.

HMOs are still a strong strategy for the right investors

The Renters’ Rights Act is not a sign that HMO investment is broken.

It is a sign that poor landlording is being squeezed out.

That is a huge difference.

Investors should not let headlines scare them off. They should ask better questions. Who is managing the property? How strong are the systems? How seriously does the operator take compliance? How well do they look after tenants? How experienced is the team behind the asset?

Those questions matter far more than fear-driven commentary around reform.

For experienced developers and professional managing agents, this sector still offers real opportunity. In fact, as weaker landlords leave, the need for quality stock run by serious operators becomes even greater.

The real takeaway for investors

Yes, the Renters’ Rights Act changes things.

No, it does not make HMOs a bad investment.

What it does do is raise the bar, and that is exactly what this sector needs.

HMOs should never have been treated like a side project for inexperienced landlords or a numbers game for investors who do not understand the responsibility involved. They are a vital part of the housing sector, and they deserve to be treated that way.

For over 34 years, we have developed and managed HMO properties. We support regulation. We support tenant protection. We believe that looking after tenants properly is part of running a strong, sustainable investment. We believe compliance should be built in, not bolted on.

So no, the Renters’ Rights Act should not put investors off HMOs.

It should put careless landlords on notice.

For anyone looking for fully rental reform compliant HMO properties, visit www.footforwardproperties.co.uk/hmo-for-sale.