Small landlords likely to exit as Renters’ Rights Act looms
4 months ago | 2 comments
Housing Minister dismisses fears that regulation will force small landlords out
9:50 AM, 14th January 2026, 3 months ago
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Housing Minister Matthew Pennycook has rejected claims that more regulation will drive small landlords out of the market.
During a debate in Parliament, Conservative MP Edward Leigh warned that imposing more regulations on small landlords would cause them to leave the private rented sector, ultimately harming vulnerable people.
However, Mr Pennycook said that “not all regulation is bad” and argued that under the Renters’ Rights Act, landlords would be able to rely on simpler grounds for possession.
Do not accept that all regulation is bad
In oral questions to the Housing, Communities and Local Government, Mr Leigh asked Mr Pennycook whether regulations could cause more harm than good.
He asked: “We all know that rent inflation is caused by over-demand and lack of supply, and we can agree on the need to address problems by building more houses and tackling immigration.
“Does the Minister agree that the more controls and regulations are imposed on landlords, particularly small landlords, the more they will get out of the rented sector altogether, causing less supply and rent inflation, which will hit vulnerable people?”
In response, Mr Pennycook claimed the build-to-rent market will form an important part of the market in the coming years.
He said: “I do not accept that all regulation is bad. In many ways, we have clarified and made simpler the grounds for possession that landlords can use under the Renters’ Rights Act, but he is absolutely right to say that we need more supply of all homes, including in the private rented sector, and that we need to support the build-to-rent sector, which will be an important part of the market in coming years.”
Government does not support rent controls
Elsewhere during the debate, Labour MP Dan Carden welcomed the Renters’ Rights Act power to tackle unfair rent increases but was concerned that market rents would be used as a benchmark to prevent unaffordable rents from rising, and called for rent controls.
In response, Mr Pennycook claimed rent controls were not part of the government’s plan.
He said: “We will of course, keep the implementation of the Act under continual review, but, as I have said, it allows tenants to challenge unreasonable rent increases at the first-tier tribunal, which will make a judgment on whether the increases are fair and meet that market-rate definition.
“We have, however, made it clear that the government do not support the introduction of rent controls, including rent stabilisation measures, for the reasons that we debated at some length during the passage of the bill.”
You can watch Mr Pennycook’s response to Conservative MP Edward Leigh below.
Tags:
Landlord Regulation, Matthew Pennycook, Private Rented Sector, rent controls, Renters’ Rights Act, small landlords
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Small landlords will be forced out of PRS and replaced by money-motivated landlords
3 months ago | 15 comments
Member Since January 2023 - Comments: 317
7:54 AM, 14th January 2026, About 3 months ago
For smaller LLs like me it is about timing as the mortgages and interest cuts kick in before this May and the market will be more in buying mode for FTB then I will sell before RRA comes in.
So I expect an acceleration of LLs like me to start selling from Easter onwards.
So supply WILL be restricted before RRA and rents will be up as the Conservative MP said.
Poppyflop is relying on Build to Rent to save his skin. Nothing will save Labours skin in 3 years time.
Member Since May 2022 - Comments: 89
9:59 AM, 14th January 2026, About 3 months ago
Unfortunately, Pennycook is absolutely clueless and anti landlord.
Never. In 30 plus years of providing rentals have so many people contacted me seeking accommodation because, “their landlord is selling up”
Unfortunately these Ministers deliver a rhetoric to suit their needs without understanding or reference to the facts.
Member Since March 2025 - Comments: 4
10:02 AM, 14th January 2026, About 3 months ago
Of course he would, because he’s a plank, just like the rest of them.
Ill-thought through policies are becoming the byword for these useless people, and it is bizarre that they can’t envisage what their plans will bring about. Madness.
Member Since October 2022 - Comments: 204
10:10 AM, 14th January 2026, About 3 months ago
It’s a shame that Edward Leigh didn’t stand up for landlords in the past when his own Tory government started the war on private landlords by inflating costs with Section 24 and other measures. He could have at least bothered to reply to my letter pointing out the totally obvious that it would push up rents and make life less affordable for tenants.
Interesting that Mr Pennycock still thinks that BTR is a major part of the solution, just like George Osborne and his fellows did.
Member Since January 2023 - Comments: 317
10:11 AM, 14th January 2026, About 3 months ago
We need a 14th U TURN!
Member Since May 2014 - Comments: 89
10:11 AM, 14th January 2026, About 3 months ago
The son of a friend of mine is buying his first flat in London. He says virtually every one that they’ve viewed is a LL selling up. Anecdotal evidence maybe, but I’m sure the trend is there.
Member Since January 2021 - Comments: 52
10:15 AM, 14th January 2026, About 3 months ago
Just completed advertising a rental – nearly 90 applications. A good proportion of these were from people who were being forced to move because their Landlord is selling. One man applied for the 2 bed house for a family with 2 toddlers and a baby and told me his landlord was selling all 9 properties due to the RRA Another lady had been in her house for 12 years and the landlord decided to no longer rent! There were a mass of applications from people who were clearly struggling because they could not meet the stricter criteria being imposed/lack of rentals available. Interestingly a lot more of the applicants seem to be aware that the issue is the anti landlord stance of the govt driving landlords out. Pennycook is fooling only himself if he believes the public dont see through his self serving twaddle!
Member Since May 2024 - Comments: 47
10:19 AM, 14th January 2026, About 3 months ago
All he has to do is a quick google search “are landlords selling up” to find the correct answer and why. Unfortunately that will not satisfy his narcissistic narrative and he will continue to ignore the facts presented to him…
Member Since August 2023 - Comments: 71
10:38 AM, 14th January 2026, About 3 months ago
Housing Minister Matthew Pennycook is not accepting facts:
In Q1 2025, previously rented homes made up 15.6% of new sales listings, up from 9.8% in Q1 2024, according to TwentyEA research.
BTR is working, to an extent, but its implementation is reliant on planning reforms and overcoming the most significant economic challenge, which is the very high initial capital cost v the rental that can be afforded in a declining economic country.
Member Since February 2024 - Comments: 71
10:52 AM, 14th January 2026, About 3 months ago
Well, I like the description of Popyflop ,,, Housing Minister Matthew Pennycook really is a silly naieve uneducated bloke, and as for the Labour Government encouraging private companies to build to rent.. well that’s amazing .. YES INDEED … make the rich even richer!!! Also when 10% of the built to rent properties are owned by the same property giant, who’s going to be in charge of the rents and the rules then? Not the government….. the giant property owners this government is creating for the future will be in control. You just couldn’t make this up could you !