Landlords face rising challenges amid new legislation claims NRLA

Landlords face rising challenges amid new legislation claims NRLA

0:01 AM, 12th August 2025, About 3 months ago 9

Text Size

Categories:

The National Residential Landlords Association (NRLA) warns landlords are under mounting pressure to keep up with multiple pieces of legislation targeting the private rented sector (PRS).

The NRLA surveyed its members for the second Landlord Eye survey, which found landlords struggling with Making Tax Digital, EPC requirements, and the Renters’ Rights Bill.

According to the survey, more than half of landlords (54%) say they are likely to sell more buy-to-let properties over the next five years if Section 24 remains in place.

Renters’ Rights Bill most dominant concern for landlords

The Landlord Eye survey reveals the Renters’ Rights Bill is still the most dominant concern for landlords.

When landlords were asked to explain what’s driving their current confidence levels, the Renters’ Rights Bill accounted for 41% of all mentions, more than any other single issue.

The NRLA survey reveals 24% of landlords are preparing to exit, matching the 24% who are waiting to see how the final bill will likely impact them.

Among those preparing to exit, some are proactively listing or selling properties ahead of the Renters’ Rights Bill, while others are bringing forward their plans to sell.

A portfolio landlord from the South West told the NRLA survey that the loss of Section 21 is the main reason for a lack of confidence in the PRS.

The landlord says: “Having to both meet criteria for a court case where a tenant is either in arrears, creating a nuisance or not treating the property with respect will be difficult and the wait times will no doubt be unacceptably lengthy as I do not believe the government will increase resources enough at all.”

Making Tax Digital one of the reasons landlords are choosing to leave PRS

Many landlords are also concerned about Making Tax Digital, with 67% expecting the new rules to affect them.

From April 2026, landlords earning over £50,000 in rent (which will drop to £20,000 in 2028) must file quarterly updates using approved software.

Only 34% of landlords told the survey they are fully confident in income reporting, with some considering leaving the market altogether due to the increased administrative burden.

A landlord from the East of England told the NRLA: “Making Tax Difficult, ooops I mean Digital, is the main reason for considering exiting the sector. I am hoping for a more reasonable interpretation than those applied to other small businesses.

“I do not know many landlords whose cashflow will survive paying tax month after month on “income” that has not been received.”

More than a third of landlords leaving due to Section 24

Elsewhere in the survey, it reveals the ongoing impact of Section 24, with landlords reconsidering their long-term investment strategies.

Section 24 was introduced in the Finance Act 2015 by the then Chancellor George Osborne, which removed a landlord’s ability to offset all of their mortgage interest from rental income before calculating the tax liability and allowed a 20% basic rate deduction.

According to the survey, more than half of landlords (54%) are likely to sell more buy-to-let properties over the next five years if Section 24 continues.

More than a third (36%) are considering a complete exit from the buy-to-let market, with only 11% saying they would consider expanding their portfolios under Section 24.

Half of landlords have some properties that are EPC D or below

According to the survey, nearly half of landlords (49%) have some properties that are EPC D or below, with 34% having all properties rated C or above.

Nearly half (40%) said they would have to use their own savings to carry out EPC upgrades, with 39% saying they would use rent increases to recoup the costs of upgrading.

The proposed minimum energy efficiency (MEES) standards for the PRS have a final policy decision expected in late 2026.

The NRLA points out that for student landlords, where tenancies typically renew annually, this could mean just one window, summer 2027, to comply.

The organisation says this would not be enough time due to the shortages of tradespeople and delays with EPC assessors.


Share This Article


Comments

Avatar

Paul Essex

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

9:12 AM, 12th August 2025, About 3 months ago

‘Landlords face rising challenges ‘ is a headline unlikely to give any reaction other than glee to the charities, the NRLA needs to be more assertive. Something like.

‘50% of tenants likely to be made homeless due to government meddling’

Pussyfooting around will help nobody.

Avatar

Lordship

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

10:44 AM, 12th August 2025, About 3 months ago

Completely agree Paul.
The NRLA really do need to get some new people running the show.

They have tried to be soft on the issues in the hope that they will get some kind of influence heard. However, they are being made to look fools and I think have damaged their own reputation as an organisation that supports good landlords and the PRS.

Avatar

Markella Mikkelsen

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

11:00 AM, 12th August 2025, About 3 months ago

Most insitutions out there, including the Labour government, have not yet joined the dots:
Struggling Landlord = Homeless Tenant

It needs to be spelled out. I agree with the comments above.

Avatar

Mick Roberts

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

12:25 PM, 12th August 2025, About 3 months ago

Some great words & points in there I’ve added to my list:

Keep spreading these words please.

WhyTenantsCan’tGetHouses

A background to why you tenants are paying extortionate rents and can’t get anywhere unless you earning a cracking wage-Blame the Govt and Councils you vote for because you like it when they give more regs & rules to the Landlord-Guess who pays for this? You do.

I’m the biggest private provider to Benefit tenants in Nottingham over 27 years and not once has the Govt and Council come to ask me What they can do for me, so I and my colleagues will take the people we used to take. I will add to this list as I remember more.

They wanted Pet deposits banned.
Cause we’d want £100 more in case dog did damage.
End of tenancy, dog did no damage, tenant got all deposit back.
2019 you banned higher pet deposits cause some tenants didn’t like it when dog did damage & didn’t get their deposit back.
We stopped taking pets.
2024 MP stood up in Parliament and called for Pet deposits to be reinstated cause tenants with pets couldn’t get accommodation.
You couldn’t make this up.
Description here https://docs.google.com/document/d/1u54ouYTdNr7WaCPYW18Q_tZdlJr8-VwSUJpE0IcPf5k/edit?usp=drivesdk

They don’t want Landlords helping tenants with Benefits and they bought in Universal Credit which has zero communication with Landlord- We now don’t take Benefit tenants.

They bought in Selective Licensing on good Landlords with good houses. We put the rents up to cover it and now don’t take risky tenants.

Landlord can get fined £30,000 if tenant takes battery out smoke alarm and Landlord CAN’T prove that tenant did it.

Landlord can get fined £30,000 if renting 1 bed flat to single person and he/she moves his/her partner in unbeknown to the Landlord if the Selective License only has license for one occupier.

They started fining Landlords £5000 if they didn’t check tenants passport properly on Right to Rent checks-Landlords stopped taking anyone that had the slightest chance of being illegal immigrant. Innocent UK citizens suffered.

2015, they bought in that if Landlord CANNOT PROVE he/she has gave tenant boiler certificate, you can never get your property back. Even if had a new boiler 5 years later, Judge says Not bothered, u not having your house back. This helped the current bad tenant, hurts the next 100,000 tenants waiting for a home. A purely Anti Landlord measure to stop Landlord getting rid bad tenant or having his house back.

Oct 2024 Unison now wants a rent freeze. Ooh are we a charity are we? What other individual who sells or provides something is told YOU CANNOT charge a price u wish?

Oct 2024 the Renter Rights Bill is going to make it law, u can’t do rent increase unless use Section 13. Now for years, I’ve agreed informally with tenant ‘Ok £25 a month, u still £200pm now below anyone else.’ Job done.
Now, I’m totally full up with paperwork and rules and regs. I have no more time. Section 13 some more say only a few mins. It’s still 30 mins by time printed, filled in, signed, scanned, sent. Each one when u have lots of houses on top of Selective Licensing INSISTING we inspect each house every 4 months (two weeks solid just on inspections every months) is taking me over the edge. My existing tenants are going to have to go with Letting Agent who charge £50 for a Section 13. That’s £4pm extra on the rent. Along with the extra £80pm Letting Agent fee which gets rid of cheap rent was charity.

Sep 2024 Ed Miliband MP wants all houses to EPC C which will cost Landlords £5000 and increase tenants cheap rents. As soon he announced this, he made more tenants homeless. Few words on that here: https://docs.google.com/document/d/1eI7z29SNRCDLLwX6_0QQChrwTxZ4jGZw4UNybVYfD1s/edit?usp=drivesdk

Section 24 Tax bought in by George Osborne of the Tories who said it will only affect 1 in 5 Landlords-That’s over 2 million tenants put at risk of homeless. Landlords with tenants of 25 years are now being made homeless on this one action alone.

Oct 2024 I’ve heard there’s a part of the RRB that says we must give tenants our home address on paperwork.
Details of that here: https://docs.google.com/document/d/1v7aETrvz0j6CdS7LZwYukthZAbhNxLWRKR8qShi6Gok/edit?usp=drivesdk

Aug 2025 RRB

Aug 2025 Making Tax digitial

Aug 2025 RRB getting rid of Seciton 21 so u can’t get rid of bad tenant which would help a good tenant get the house.

Every anti Landlord measure they bring in to they think will help the tenant has hurt the tenants massively.

Every time the MP’s talk an anti landlord measure, they’ve made more homeless and increased rents.

There is loads more

Avatar

Crouchender

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

13:50 PM, 12th August 2025, About 3 months ago

Any change in PRS sector not matter how bad will bring training income for NRLA courses/ templates. NRLA are sales company and only pay lip service to lobbying.

Avatar

Northernpleb

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

18:33 PM, 12th August 2025, About 3 months ago

Most of us probably bought our properties prior to first attack on Landlords by Osbourne. We have successfully provided Good Homes to millions of people who have been happy with Private Landlords. I believe 85% was mentioned.

Now its getting impossible , millions of tenants could loose there homes due to The Government , and Councils war on Landlords. Death by 1000 clip boards.

Avatar

JamesB

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

22:45 PM, 12th August 2025, About 3 months ago

Reply to the comment left by a Northernpleb at 12/08/2025 – 18:33It actually is a death by 1000 cuts.
I believe I have been a good landlord for 30 years with literally hundreds of tenancies in that time. I have put up with a lot of bad tenants over the years, worst amongst them – the burnt out 4 bedroom house due to a cannabis factory, another house with non paying house trashing benefit tenants etc, yet somehow whilst that was all surmountable I feel that the government’s continuous meddling isn’t.
I no longer have the energy for MTD, at the same time as looming massive EPC expenditure to save tenants 50p, and the nightmarish RRB along with the daily onslaught of the threat of new fines, new licencing schemes etc whilst now making real terms capital losses on my houses and ever diminishing net income whilst inflation is yet again out of control.
I feel I have no choice but to throw in the towel as a landlord and am in the process of doing so, one house at a time. Weird really because fundamentally all I do is provide expensive family homes that I have bought and paid for (eg £600k plus) to decent families, in return for a net yield of about 3% and I am always on call for any issues. I guess that’s just not enough, so others can take over, if they like.

Avatar

Steve Ticket

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

11:49 AM, 13th August 2025, About 3 months ago

This is one of the reasons I have now left the rental sector. I have gotten so fed up with the legislation, taxation and landlord licenses that I decided it was not worth the hassle anymore.
It took me 6 months to get rid of my tenant and that ended up going to court as the ‘council’ told him to stay put, his reason was that he couldn’t afford anywhere else.
Why should the honest landlord who looks after their property and tenants be penalized for the crimes of rogue landlords.
Shelter and any other champions of the RRB, you’ve only got yourselves to blame for rising rents.
I’ve now sold up, put my money in a bond and am earning about the same with no hassle. The government will say that small time landlords don’t have an effect leaving the sector but you add all of us together and you can take care of the tenants who can’t afford anywhere to live.
I’m out and I won’t be going back in.
The

Avatar

Mike Smith

Become a Member

If you login or become a member you can view this members profile, comments and posts!

Sign Up

15:51 PM, 13th August 2025, About 3 months ago

Might as well go into landlord electrical testing, maybe I’ll have less responsibility and more money.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up