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, 4 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
4 months ago | 15 comments
Member Since October 2019 - Comments: 402
1:20 PM, 14th January 2026, About 4 months ago
With everything that’s going on now – my mental health is a mess!
Member Since September 2018 - Comments: 3550 - Articles: 5
1:23 PM, 14th January 2026, About 4 months ago
and if LL are not forced out?
Then rents will go up to account for all the legislative tick boxes are required to be ticked and demands that result to be met….
Member Since January 2021 - Comments: 52
1:40 PM, 14th January 2026, About 4 months ago
Reply to the comment left by Reluctant Landlord at 14/01/2026 – 13:14
I have been watching what has been built or is being built locally – in Norwich there is a site in the city centre where an 1970s office block is being demolished and an equity company Zive Capital are developing a lot of high end flats and also family homes for rent not purchase and I quote from EDP
“Of these, 263 will be one-bedroom, 152 two-bedroom and 17 three-bedroom homes, along with 74 parking spaces. The plans also include co-working spaces, a gym and a café. More than 600 bicycle parking spaces will be available”
Cannot see benefits applicants passing the affordability threshold – interesting also the number of parking spaces compared to bike spaces!
And yet like him or loathe him I believe Mr Trump is banning equity companies from buying up family homes …….wonder if that could eventually happen in UK after the next election?????
Member Since January 2016 - Comments: 236
2:14 PM, 14th January 2026, About 4 months ago
Reply to the comment left by Peter Merrick at 14/01/2026 – 10:10
Poppycock spotted that Osborne trousered £650,000 per annum from BlackRock for a few days work per month and obviously wants some of the same action.
Some would accuse him of corruption … I couldn’t possibly comment
Member Since January 2016 - Comments: 236
2:26 PM, 14th January 2026, About 4 months ago
The last house I sold was in 2018 and had planned on sticking with the rest of them for the foreseeable. Like many though, I’ve decided to really consolidate down to my best 2 or 3 so bit the bullet and put one on the market yesterday. 2 viewings booked already so fingers crossed 🤞. The agent also has about half a dozen decent prospective tenants for it but I’ve had enough. My kids see the hassle and agro and aren’t interested any more. Surprising how good I feel having made the decision.
Member Since May 2017 - Comments: 771
3:51 PM, 14th January 2026, About 4 months ago
Reply to the comment left by Grumpy Doug at 14/01/2026 – 14:26
Same here, my kids wont touch my business with a barge pole. Shame, after 25 years building it, its now being dismantled and discarded.
I can’t wait til I’ve sold the lot
Member Since March 2018 - Comments: 184
5:25 PM, 14th January 2026, About 4 months ago
The Build to Rent (BTR) sector currently supplies 2% of the UK’s private rented sector (PRS), and is eventually expected (by who is not clear) to grow to 35% – but this % is a guess, and , how many years it will take to grow from 2% to 35% is a guess too – and “jam tomorrow”. ….Meanwhile, today private Landlords are selling up, reducing supply immediately. Poppycock is naive.
Member Since June 2024 - Comments: 1
6:10 PM, 14th January 2026, About 4 months ago
They are clueless, absolutely clueless. LLs are selling & a lot of these tenants have credit issues so will struggle to get housed. We won’t touch anyone with credit issues anymore. We are now looking for the perfect tenant with guarantor. All our rents have now gone up to full market value. Excited a few tenants on via S21, the types we don’t wish to be stuck with. I looked at a small portfolio the other day BMV, I walked away due to the stamp duty. No money in this game it’s just legislation & tax oh & fines if you get it wrong. A lot will sell the minute the tenant plays up.
Member Since July 2023 - Comments: 71
7:36 PM, 14th January 2026, About 4 months ago
Tenants could already challenge rents, I had one who did and they had their rent raised.by the tribunal (under the pre-meddled system).
The tribunal took about a year and was poorly staffed and managed. it cost the tenant nothing and during the period the tenant would not allow me access and made false claims to the tribunal in an attempt to lower tent.
I had not raised the rent for many years and the tenant became unreasonable when I did.
The meddling minister has made a bad system worse by changing the tribunal rules so rents can now only be raised by the tribunal to the lower of either the current market rent or what the landlord had put the rent up to. The pre-meddled system used the market rent as the tribunal benchmark.
What isn’t recognised is kind landlords who don’t charge market rent are effectively subsidizing their tenants. I can’t think of any other industry where people are prevented from charging the market price when it becomes clear they are maybe inadvertently discounting.
In conclusion under the meddled system the advice would be to raise rents above market as the tribunal will at worse use market as their guide.
Paul
Member Since January 2026 - Comments: 1
7:52 PM, 14th January 2026, About 4 months ago
Hi
This is my 1st comment on property 118
Having worked in the public section
Council housing for 25 years I now have a small number of properties it is very clear to me and most other landlords that this a disaster and the current housing minister and his advisor in Whitehall haven’t a clue on managing tenancies get a bad tenant and you will be in trouble financially it will cost a fortune and time to get it to court
It was clear that the section 21 wasn’t working, during my time as a support worker I have witnessed some very bad practices
on serving the notice to evict people who may have had valid reason for bringing it to the attention of the landlord
But the renter reform bill will make anyone think twice before entering into the industry
Many thanks Ian