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
53
Categories:
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
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
or
Related Articles
Small landlords will be forced out of PRS and replaced by money-motivated landlords
3 months ago | 15 comments
Member Since May 2014 - Comments: 620
8:02 PM, 14th January 2026, About 3 months ago
Reply to the comment left by Paul Smith at 14/01/2026 – 19:36
I would not trust tribunals.
They were really bad pre 1988 rent act when we last had sitting tenants.
The composition of the tribunals then did not give me confidence.
They was usually a justice of the peace and others with very little experience in property.
I hope that I am wrong but I fear that they will be used as a mechanism for reducing rents.
Member Since May 2024 - Comments: 111
9:57 PM, 14th January 2026, About 3 months ago
Pimplepot is arguing that landlords can rely on simpler grounds for possession. They have swapped a straightforward procedure involving a ‘no reason given’ (which the courts couldn’t handle in a reasonable time frame) for a ‘reason given’ which will take many months to process.
Member Since October 2022 - Comments: 204
10:14 PM, 14th January 2026, About 3 months ago
Reply to the comment left by Alexandra at 14/01/2026 – 10:15
I advertised a room the other day and one of the applicants also said that he was only moving because his landlord was selling up.
Member Since May 2024 - Comments: 204
4:56 AM, 15th January 2026, About 3 months ago
Both Conservatives and Labor are part of the same plan. Get rid of the PRS and hand it to the corporate industries that pay for them to be in power.
They all hate the thought of Jo blogs being able to survive retirement by owning a BTL.
Pennycrook knows exactly what he is doing by destroying the PRS.
When my tenants leave, I will sell up and move my money overseas. I refuse to sell to any cooporations and will just sell to tenants or first time buyers.
I’ve had it with the UK government.
Member Since March 2023 - Comments: 1506
7:00 AM, 15th January 2026, About 3 months ago
Reply to the comment left by Desert Rat at 15/01/2026 – 04:56
I too will sell my remining 5 properties when the tenants leave or die (If I die I know my wife will sell them straight away !). I have already sold properties to 3 tenants (had 18 properties once) but I will sell to anyone who has the money to buy them.
Member Since September 2018 - Comments: 3514 - Articles: 5
8:44 AM, 15th January 2026, About 3 months ago
Reply to the comment left by Alexandra at 14/01/2026 – 10:15
I have had the same, but in certain cases I am not buying the claim that LL are actually selling up. Between now and 1st May there a lot of LL’s perhaps getting rid of T’s ahead of the RRA while S21 still in place.
Theoretically then any claim after 1st May that a LL is selling can actually be checked. If the (exiting LL) is in fact using the ground to sell then evidence must have been supplied and in the main that will mean the property being advertised. Another way the LL to whom a T has applied for accommodation can check this is the real reason before deciding to offer the applicant a TA…
Member Since March 2023 - Comments: 1506
8:57 AM, 15th January 2026, About 3 months ago
Reply to the comment left by Reluctant Landlord at 15/01/2026 – 08:44
Believe me , landlords are selling up. I sold a property in September and at the time there were 18 two bed properties for sale or sold on my estate. I can say for certain that at least 14 of them were rental properties.
Member Since September 2018 - Comments: 3514 - Articles: 5
10:00 AM, 15th January 2026, About 3 months ago
Reply to the comment left by Stella at 14/01/2026 – 20:02
where will the tribunals be getting their rent info from though to determine what the right rent amount is?
Less properties to rent soon (so where do they find similar rental comparisons?) and ‘Market rate’ is about to get distorted as LL’s (after May 1st) will only be listing maximum rental amounts not what a property actually rents for. (that info only held with LL and T)
Member Since May 2017 - Comments: 763
11:25 AM, 15th January 2026, About 3 months ago
Reply to the comment left by Reluctant Landlord at 15/01/2026 – 10:00
Once the ‘market rent’ is established there will only be a few uncontested cases climbing above that amount. Therefore in effect its a rent control as all contested cases will be dragged back down to the ‘market rent’ which will not increase
Member Since January 2026 - Comments: 1
1:31 PM, 15th January 2026, About 3 months ago
I have a small portfolio of 5 houses my tenants are long term. I have worked hard all my life in order to buy my properties so I would have a reasonable income when I retire. I don’t put my rents up often as I realise the cost of living is high for everyone however it has come to a point where it is no longer viable to keep my properties as all the rules and regulations are crippling me. I would be better off selling up and paying the extortionate CGT than keeping my properties as with interest on my savings I can get buy. I have had most of my properties for a long time and always kept them in good repair but 4 out of the 5 are a category d rating and I can not afford to start renewing windows and doors and central heating and insulation etc to keep up with government demands to bring the houses to a C rating. Why is this just landlords who have to do this and not every homeowner? The Government has already taken away interest relief on mortgages and put relief at 20%. Why should I have to pay for tax on mortgage payments when this is not profit? If I sell up I pay CGT so in my mind I am being penalised twice. I have been lucky so far with my tenants but I know others who’s properties have been wrecked and left in disgusting states with the majority of repair cost falling to the landlord. Then there are those who decide they will not pay their rent and squat it costs the landlord a lot to get them removed. There are no consequences for the tenants who do this they just breeze through life a lot of them never working a day in their life and getting paid to buy cigarettes and booze have numerous kids and complaining that they don’t have enough money. As a person who has worked all their life and paid my taxes it has come to a point where I no longer wish to contribute much of my income to pay for illegal immigrants and people who have no desire to work, and who can blame them what’s the point of working? I realise that taxes go to other things like schools etc which are necessary. My son went to private school for which I worked 16 hour days to pay for it and paid taxes to support state schools also. Its a joke that private school fees are now taxed when the parents are already paying. We are now considering emmigrating and setting up elsewhere my tenants will no longer be able to live in their long term housing due to the greedy government which I feel bad about but in order to have the retirement I deserve it is the only way forward for me and undoubtedly many others.