Small landlords exit the PRS amid Renters' Rights Bill fears

Small landlords exit the PRS amid Renters’ Rights Bill fears

Businessperson walking toward a bright exit symbolizing landlords leaving the rental market
12:01 AM, 7th August 2025, 9 months ago 9

Growing numbers of Britain’s small-scale landlords are exiting the private rented sector, driven by concerns over the government’s Renters’ Rights Bill, a survey reveals.

According to data from Alto, a property management software provider, 34% of letting agents say they have seen a notable increase in independent landlords offloading their properties.

The survey, which gathered insights from 250 agents, also shows a striking 93% of respondents expressed worry about losing their independent landlord clients because of the Bill.

Plus, 70% of agents confirmed that some of their landlords have already sold properties within the last year.

The agents also say that along with managing properties, they are increasingly having to manage the reforms, but more support is needed.

Rent rise risk

The firm’s chief executive, Riccardo Iannucci-Dawson, said: “Independent landlords are the lifeblood of the sector.

“If we lose them, tenants lose choice and stability – and we risk pushing rents even higher.”

He added: “Letting agents are facing unprecedented pressure – from legislative upheaval to operational chaos.”

The Renters’ Rights Bill, which will abolish fixed-term tenancies and Section 21 ‘no-fault’ evictions, but small landlords are getting out now.

Small landlords leave

Alto says that the landlords most affected are those with one or two properties, often bought as pension investments or through inheritance.

These individuals are grappling with a combination of challenges, including rising interest rates, tougher energy efficiency regulations and new legislative demands.

Many of them say they feel increasingly demonised, adding to their decision to sell.

The firm, which supports more than 25,000 letting agents, is urging the government to offer clearer guidance on the Bill’s impact.

The company offers lettings tools that help agents manage everything from compliance and contract changes – and stay on top of legal reforms.


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Comments

  • Member Since January 2015 - Comments: 1447 - Articles: 1

    9:37 AM, 7th August 2025, About 9 months ago

    The Renters Reform Bill was the last nail in my PRS coffin and the start of my selling up.

    The Renters Rights Bill says it all – glad I started when I did.

  • Member Since December 2023 - Comments: 1587

    9:41 AM, 7th August 2025, About 9 months ago

    The RRB gives tenants the right to know why they are being evicted – and they will be.

  • Member Since October 2019 - Comments: 400

    10:21 AM, 7th August 2025, About 9 months ago

    Is government logic simply, LLs sell up thus providing more properties for sale which then gives tenants a chance to become property owners/LLs ??

  • Member Since January 2015 - Comments: 1447 - Articles: 1

    11:15 AM, 7th August 2025, About 9 months ago

    Reply to the comment left by LaLo at 07/08/2025 – 10:21
    Don’t think so as majority of renters cannot obtain mortgages.

    Property ownership for “ordinary” people only became an aspiration after WWII. The norm before then was renting.

  • Member Since October 2023 - Comments: 205

    11:25 AM, 7th August 2025, About 9 months ago

    I’ve sold one, a second I have asked tenants to leave so I can sell, and one more which I will sell next year.
    My local council (Belfast) adds new (retrospective) requirements every year, and central government are doing the same, so I’ve had it with being a landlord.
    The tenants will not be able to get council houses, there aren’t any because the council sold them and blew the money on nonsense.
    Careful how you vote, folks.

  • Member Since May 2024 - Comments: 115

    2:18 PM, 8th August 2025, About 9 months ago

    Individual private investment is not for us ‘plebs’. We should be grateful to be able to invest in our leaders golf buddies companies and be thrown some peanuts from time to time. Even better, we should spend all our money to boost the economy and enrich the oligarchs..

  • Member Since January 2023 - Comments: 145

    8:11 AM, 10th August 2025, About 9 months ago

    Thus far the Act has caused tens of thousands of rental homes to be withdrawn and sold hence rents have been very strong

  • Member Since September 2018 - Comments: 3538 - Articles: 5

    1:31 PM, 10th August 2025, About 9 months ago

    what worries me most is the move to all tenancies being one month periodic overnight and no min fixed term at the very least.

    Hoe does that benefit tenant or LL? This creates a problem that never existed.

    Some may say they want long term but are really looking at for just a 2, 3 ,4 month stay.
    I pay an agent tenant find etc/ and then two days after they move in they hand in their two months notice and I have to start the whole process again with costs for voids, referencing….

  • Member Since January 2015 - Comments: 1447 - Articles: 1

    12:54 AM, 11th August 2025, About 9 months ago

    Reply to the comment left by Reluctant Landlord at 10/08/2025 – 13:31
    A tenant only, and will only, have to give 1 months notice. A landlord currently has to give 2 months which will be extended to 3 months.

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