More than a quarter of landlords have sold, or are now selling, at least some of their homes because of the Renters’ Rights Act, according to fresh research from the National Residential Landlords Association.
The NRLA’s latest Landlord Eye survey found that 26% of respondents had already sold or were selling properties as a result of the Act, while another 19% were considering a sale. The findings, released as the sector prepares for the next stages of reform, put renewed focus on whether policy costs are changing the supply of homes to let.
Small landlords appear especially exposed. More than six in 10 single-property owners told the association they were no longer sure they would still be landlords by the end of next year, a warning sign because smaller portfolios make up a large share of local rental stock.
Landlord confidence falls as costs and licensing bite
The survey was carried out between May and June and covers respondents’ views rather than recorded property transactions. Even so, the split between landlords who have acted and those weighing a sale is significant at a time when England’s rental market has little spare capacity.
Rising costs were the most common concern in written responses, mentioned by 40% of those commenting. Government policy followed at 33%, while 76% of respondents to a question on local licensing said the administrative burden was increasing.
“We simply cannot afford to lose any more homes” from the private rented sector.
The National Residential Landlords Association
This follows Residential Landlord’s August report on the £7.6bn of family support helping first-time buyers leave renting. That work pointed to one route by which rental demand can ease; the NRLA figures point the other way, with landlords potentially removing homes before tenants have an alternative.
Sales may not produce a clean exit from rental demand
A landlord sale does not automatically mean a tenant loses their home, since a property can be bought by another investor. The greater risk is when homes are sold with vacant possession to owner-occupiers, or when compliance and finance costs deter would-be replacement landlords from bidding.
That distinction matters in areas where a small number of rented homes changes hands each month. A sharp increase in disposals can reduce choice even if headline supply figures do not collapse immediately, leaving remaining landlords with more pressure to manage tenant demand and rising operating costs.
Compliance costs are already showing up in management decisions. A recent Goodlord poll on agent fees and possession concerns found that nearly one in four landlords had seen letting costs rise after the Act. That does not prove a sale will follow, but it helps explain why a new licensing charge, repair bill or remortgage can be decisive for a marginal portfolio.
The association is using the survey ahead of the Autumn Budget to call for tax measures designed to keep landlords investing. Its full Landlord Eye update also links the fall in confidence to future minimum energy efficiency standards and the remaining phases of rental reform.
Opinion
The 26% figure is survey evidence, not a national count of homes sold, and it should be treated as a measure of sentiment rather than a forecast. But ministers should not dismiss it. If policy is intended to improve standards without worsening the shortage, implementation costs and enforcement must be clear enough for compliant landlords to plan around. Otherwise the homes most likely to disappear are the modest, single-property lets that are hardest to replace.
