Seven in 10 landlords say they will raise rents to cover higher compliance costs under the Renters’ Rights Act, while nearly half are planning to cut exposure to the private rented sector or leave it altogether, according to new research from Allsop.
Allsop survey points to higher rents and fewer smaller landlords
The firm said 70.3% of respondents would respond to higher compliance costs by increasing rents. A further 23.2% said they would sell, and 48.4% in total said they planned either to sell all rental homes or reduce the number they own.
Among single-property landlords, the pressure looked sharper. Allsop found 51.8% of those landlords were unlikely or very unlikely to continue letting after the end of Section 21. Across the whole sample, 41.7% said the same. Only 19.3% felt ready to meet the new standards introduced from 1 May.
Seb Verity, head of research at Allsop, said the sector was not just shrinking but consolidating, with smaller landlords leaving while larger and more institutional operators selectively held or grew stock.
He added that the Act may professionalise the market, but the combined effect of regulation, mortgage costs, tax reform and EPC obligations was testing the resolve of many smaller landlords and was likely to increase the cost of renting.
That points to a market where the headline issue is no longer just exits. It is who is left behind. If small landlords keep selling while larger operators stand still or expand, tenants may face a market with less choice, tighter criteria and less flexibility at the lower end.
This follows Residential Landlord’s recent coverage of the Section 21 rush before the new regime, which showed many landlords were already acting before commencement day. That picture now looks less like a short burst of activity and more like a longer reshaping of who owns England’s rental stock.
What the new split means for landlords
For landlords who intend to stay in the market, the survey suggests there may be room to compete as weaker or more reluctant operators leave. But it also shows why rent pressure is unlikely to fade quickly. If compliance work, finance costs and legal risk all stay high, many landlords will try to recover that through pricing.
There is also a warning here for policymakers. A law aimed at improving standards can still cut supply if the cost of meeting those standards lands hardest on the smallest operators. Residential Landlord has already reported how rent levels remain under pressure in large parts of the country. Allsop’s findings suggest the post-Act market may keep that pressure in place rather than ease it.
Allsop’s full findings are available in its Renters’ Rights Act client survey.
Opinion
The government may get the more professional sector it wants, but landlords and tenants could both pay for that change in the short term. When almost three quarters of landlords say higher costs mean higher rents, ministers cannot pretend the transition will be painless.
