Most renters believe the Renters’ Rights Act will improve protections in the private rented sector, although concerns are growing that the reforms could reduce housing supply and push up rents over time, according to new research from Barclays.

The lender’s latest Property Insights report found awareness of the legislation has risen sharply since the Bill passed last October. Six in 10 renters now say they understand the aims of the Act, up from just 19% previously, while 62% believe the reforms will improve housing conditions and tenant protections. A similar proportion said the legislation would make it easier to challenge unfair treatment from landlords.

The changes are already influencing tenant behaviour, with 19% saying they are now more likely to remain in their current property. However, concerns about the longer-term impact of the reforms are also increasing. Around 45% of renters believe restrictions on evictions and rental bidding wars could lead to higher rents, while the same proportion fear landlords may leave the sector, reducing supply.

The report also points to growing caution among homeowners considering investment properties. Just 11% said they are planning to buy an additional property within the next two years, while many cited affordability, running costs and higher taxes as barriers. Buyers purchasing a second home face average upfront costs of almost £86,000 once deposits, stamp duty and associated fees are included.

Many homeowners also appear reluctant to take on landlord responsibilities. Around 69% said they would not want to become a landlord because of the costs and complexity involved, while nearly half believe owning an additional property is too financially risky in the current climate.

Attitudes towards property investment are also shifting, with more than a third saying additional home ownership adds pressure to the housing market and a similar proportion preferring to invest in the stock market instead.

Among older homeowners, the research suggests many continue to view housing primarily as a family asset rather than a retirement fund. Three quarters of Baby Boomers said they do not plan to use money tied up in their home to support retirement, while 31% said they see their property as something to pass on to family members.

Despite this, Barclays mortgage data shows older buyers are still opting for larger homes, with more than half of purchases made by over-60s in the past year involving detached or semi-detached properties rather than smaller flats or bungalows.

Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “As deposit challenges persist, the measures of the Renters’ Rights Act to curb steep rent increases could give tenants more scope to save, and in turn widen access to the property ladder. However, the longer-term impacts on rental housing remain to be seen, as homeowners weigh up investment in bricks and mortar against other asset classes.

“For most, property is about far more than finances. It provides stability and plays a key role in family legacy, and many retirees do not need to supplement their income through property. ‘Right-sizing’ still has an important part to play in unlocking housing supply, but it will only gain traction if there are clear and meaningful incentives.”

Julien Lafargue, chief market strategist at Barclays, added: “The interest rate environment remains challenging, with domestic political uncertainty compounded with the ongoing geopolitical tensions in the Middle East. Even so, the UK economy continues to demonstrate resilience, suggesting that once these headwinds ease, conditions should improve.”