Private Rented Sector (PRS)
The Private Rented Sector (PRS) is the part of the housing market where homes are owned by private individuals or companies and let out on residential tenancies, usually assured tenancy or assured shorthold tenancies. It sits alongside social housing, owner-occupation and, increasingly, build-to-rent schemes backed by institutional investors.
From a landlord’s perspective, the PRS is now a heavily regulated business environment rather than a casual sideline. Core rules cover deposit protection, fitness for human habitation, safety standards, rent and fee regulation, tax, licensing and anti–money laundering requirements, with additional layers in some local authority areas.
The Renters’ Rights Act marks a major shift in how the PRS operates, phasing out most “no-fault” routes to possession, strengthening enforcement against poor practice and expanding redress and ombudsman schemes. Professionalism, record keeping and transparent communication with tenants are increasingly expected norms.
For responsible landlords, the PRS can still offer long-term, income-producing investment, but it requires active management, a good grasp of legal duties and a willingness to adapt to reform. For renters, the aim of the new framework is a PRS that is safer, more stable and fairer, while still allowing landlords to run a viable business and recover possession on legitimate grounds.
