The Private Rented Sector (PRS) in England evolved from dominating over 90% of housing in 1915 to a sharp decline, largely due to 20th-century rent controls and security of tenure, before reviving post-1989
The Housing Act 1988 marked the end of the strict Rent Act era, deregulating rents and introducing Assured Shorthold Tenancies. Key legislation has since shifted toward regulation, safety standards, and imminent abolition of “no-fault” evictions.
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Key History and Legislation
- 1915-1950s (Control Era): WWI rent controls were introduced to prevent profiteering, which continued to restrict rents and protect tenants for decades, causing the sector to contract.
- Rent Act 1957: Attempted to revitalize the sector by reducing rent control, but led to issues including “Rachmanism”.
- Rent Act 1965: Introduced regulated tenancies with “fair rents” set by officers.
- Housing Act 1988: A massive turning point that deregulated new lettings from Jan 15, 1989, allowed market rents, and introduced the Assured Shorthold Tenancy (AST).
- Housing Act 1996: Made AST the standard, easier way to let property.
- Housing Act 2004: Introduced mandatory licensing for HMOs (Houses in Multiple Occupation) and the Housing Health and Safety Rating System (HHSRS).
- Deregulation Act 2015: Aimed to stop “retaliatory evictions” when tenants complained about conditions.
- Homes (Fitness for Human Habitation) Act 2018: Strengthened requirements for safe living conditions.
- Renters’ Rights Act 2024 (received Royal Assent 2025): Landmark legislation abolished Section 21 “no-fault” evictions (from 1 May 2026), introduced periodic tenancies, and introduced an Ombudsman.
Post-1989 Trend
Following the 1988 Act, the PRS grew, bolstered by buy-to-let mortgages, but has seen increased regulation regarding property standards, gas, electrical and fire safety and energy efficiency (EPC standards. The recent, significant shift is moving away from the landlord-favoured 1988 model toward greater security for tenants.
