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 March 2018 - Comments: 184
2:58 PM, 15th January 2026, About 3 months ago
Reply to the comment left by JB at 15/01/2026 – 11:25
Where are the criteria for “market rate rents” as properties vary by size, layout, location, amenities, quality of fittings, etc. and local properties may not have been let to new tenants for many years, so their rent levels may be out of step with recent lets?
Member Since May 2017 - Comments: 771
3:17 PM, 15th January 2026, About 3 months ago
Reply to the comment left by Peter G at 15/01/2026 – 14:58
True. I’ve always wondered how ‘average house price’ is calculated. If it goes up, maybe more people are buying big houses and fewer people are buying smaller ones
Member Since May 2014 - Comments: 620
3:19 PM, 15th January 2026, About 3 months ago
Reply to the comment left by Reluctant Landlord at 15/01/2026 – 10:00
I dont think the tribunals will worry too much about market rate.
They are more likely to use the deposit protection register for their information and I cannot see much allowance being made for improvements to property.
My gusss is that they might use the most basic rent as their guide with little consideration given to the state of the property.
Member Since May 2017 - Comments: 771
3:30 PM, 15th January 2026, About 3 months ago
Reply to the comment left by Stella at 15/01/2026 – 15:19
If you’re only going to be awarded the average rent, smaller, grottier, lower value properties, is the way to go
Member Since March 2023 - Comments: 1507
5:11 PM, 15th January 2026, About 3 months ago
Reply to the comment left by Jayne Baker at 15/01/2026 – 13:31
Happily 3 of my properties are in a LTD company, so no CGT just tax on profits. My plann when I sell one of those properties is to pay the profits (or as much as I can) into both mine and my wifes pension thus reducing the tax paid.
Unfortunately the other 2 properties when sold will attract CGT and because BTL is not classed as a ‘business’ the amount you can pay into a pension pot is limited (tht’s another government unfairness)
Member Since December 2019 - Comments: 8
7:19 AM, 17th January 2026, About 3 months ago
https://www.facebook.com/share/v/1C2UwjN7Pm/
This short film says so much about corporate landlords. Worth 30 seconds to watch.
Member Since January 2026 - Comments: 1
9:00 AM, 17th January 2026, About 3 months ago
I’m not being forced out , I am just removing it from the market , I provided reasonable excellent value accommodation over the last 40 years . I am sick of government impositions and interference, result another property lost to the housing market .
Member Since July 2015 - Comments: 45
9:42 PM, 18th January 2026, About 3 months ago
I’m definitely out….Making Tax Difficult was the last straw. We will keep a couple.
Property will remain an asset class that I will hold as part of my wealth but we won’t rent it out in the traditional sense. My family ie grandkids, nephews can use the property rent free. It will then pass onto them when we hit 65 ish, hopefully we live 7 years after that….no point giving 40% away on death.
And for income we will spend that pension we were going to handover to the kids on death….its now subject to IHT so it’s needs to be spent or withdrawn and gifted.
Used to be people didn’t trust their family so didn’t pass their wealth on quickly enough. How I don’t trust the government….so at only 55 we are already passing on and spreading out our property and wealth. I’m even happy if grandkids spend and waste it….better than to government doing that.
Member Since July 2014 - Comments: 59
12:33 AM, 7th February 2026, About 3 months ago
Reply to the comment left by Reluctant Landlord at 14/01/2026 – 13:14
Well, once the Corps get a foot hold and have driven out the independents like us, they may turn to supply ‘housing for the masses’ on the basis that with no competition they can hold any incumbent Gov to ransom. So the tax payer becomes their revenue stream.
Bit like the PFI scheme which bankrupted the NHS and is still being paid for today.
Member Since February 2024 - Comments: 72
1:49 PM, 7th February 2026, About 3 months ago
Reply to the comment left by AJR at 00:33
Absolutely right! The corporate landlords and their lobbyists will hold the power in the future. More money for the rich and tough luck to the vulnerable from a very unworking class government!!!! Local councils can’t rehouse people one at a time let alone dozens or hundreds at a time when a corporation pulls out….
Why are our politicians so stupid?