Landlords could face possession and enforcement pressures

Landlords could face longer possession delays and tougher council enforcement during the second half of 2026.

That’s the view of Allison Thompson, the chief lettings officer at Leaders, who adds that the sector has continued to operate successfully despite repeated economic shocks and regulatory changes.

She adds that the Renters’ Rights Act, weaker economic growth and renewed inflation pressures are likely to shape the property market over the coming months.

Ms Thompson said: “Over the past couple of decades, we have experienced a worldwide recession; a pandemic; rocketing inflation; a huge number of lettings legal changes, mainly around licensing and safety standards – and both lettings and sales have proved resilient.”

More landlords being penalised

Ms Thompson is also warning the UK’s landlords that greater enforcement activity could be coming.

She points to Greater Manchester, where landlord fines have recently risen by 43%.

And with Andy Burnham returning to Westminster, the private rented sector could receive greater political attention.

Ms Thompson said: “With the rise in the maximum level of fines and increased government funding for local council enforcement efforts, we will probably see more landlords being penalised for breaking the law.”

Longer possession times

Leaders is also warning that possession cases may also take longer because contested claims must go through the courts.

The median period between a possession claim and a landlord recovering the property reached 27 weeks in 2025, up from 24 weeks during the equivalent period in 2024.

Although ministers have promised court reform and a more streamlined legal process, the firm says little progress has been made.

Ms Thompson said: “Although court reforms and streamlining of the legal process has been promised, very little has actually been done so far.”

BTL long term investment

The UK’s landlords were achieving an average gross yield of 5.8% in March, according to figures from Zoopla.

The North East recorded the highest regional average at 7.9%, while yields in some northern cities exceeded 8%.

Rent growth has slowed as tenants reach the limits of affordability, although rents are expected to continue rising during the rest of the year.

However, Leaders says the supply of available rental homes remains almost 25% below pre-pandemic levels.

Ms Thompson said: “The market is cyclical, so there will always be peaks and troughs, and both buy to let and home ownership should be viewed as long-term investments.”