Private Rental Sector (PRS)
The Private Rental Sector consists of properties owned by individuals or companies (rather than the local council or a housing association) and let out for profit. Historically, this sector was defined by short-term "Assured Shorthold Tenancies," but as of May 2026, the sector has moved to a system of long-term security where all tenants are on rolling, periodic contracts by default.
The sector includes everything from a single room in a House in Multiple Occupation (HMO) to high-end luxury apartments and family homes.
If you would like to know more about the Private Rental Sector, view the complete Private Rented Sector Database. For more information on private renting, view the official gov.uk private renting glossary.
The "New Normal" for the PRS in 2026
- Professionalisation: Increased regulation means more landlords now use professional Letting Agents to manage their properties.
- Digital Transparency: A new national Private Rented Sector Database is being introduced, allowing tenants to check their landlord’s track record.
- Higher Standards: Properties must now meet a "Decent Homes Standard," ensuring they are warm, safe, and well-maintained.
Frequently Asked Questions
Is the PRS different from "Social Housing"?
Yes. Social housing is provided by local councils or non-profit housing associations at lower-than-market rents. PRS properties are owned by private entities, and the rent is typically set by the "market rate" for the local area.
Who regulates the Private Rental Sector?
The sector is regulated by the government through laws like the Housing Act 1988 and the Renters’ Rights Act 2025. Local councils also have powers to inspect properties and issue fines or Rent Repayment Orders (RROs) if a landlord fails to meet legal standards.
How many people live in the PRS?
The sector has grown significantly over the last 20 years and now accounts for roughly 20% of all households in England, making it the second-largest housing tenure behind homeownership.