Renters' Rights Act sees 'hobby landlords' leave the sector

Renters’ Rights Act sees ‘hobby landlords’ leave the sector

Landlord carrying a model house walking toward an exit, symbolising leaving the rental market
8:32 AM, 21st April 2026, 4 days ago 12

Hobby landlords are increasingly leaving the PRS because of the Renters’ Rights Act, while other landlords will increase tenant checks and tighten letting criteria, raising questions about rental home access for some potential tenants.

Those are the views of Louisa Sedgwick, the managing director of mortgages at Paragon Bank, who was speaking on a podcast hosted by Tom Bill, the head of UK residential research at Knight Frank.

She said landlord behaviour is shifting ahead of the 1 May start date.

Ms Sedgwick pointed to changes around rent in advance and affordability checks, which are beginning to influence decision-making.

Landlord behaviour changes

She said: “I think what will happen without a shadow of a doubt, and you are already seeing this, is that the due diligence that landlords will do on any new tenant will be significantly higher than it has been in the past.

“A tenant can now no longer pay rent in advance, and that might have been a way to secure a property if they had a previous poor credit history or they weren’t working or relying on universal credit.”

She added: “We’ll see more vulnerable tenants not being able to secure properties as a result of the Renters’ Rights Act.”

Landlords are leaving

Ms Sedgwick said a combination of tax changes and higher stamp duty is feeding into landlord exits.

She said: “There is absolutely a move towards hobby landlords leaving the sector.

“It just becomes harder, and I think this is kind of the point where landlords say, unless I’m going to do this either as a full-time role or certainly concentrate and focus time and effort on making sure that I can make this a viable business, then I’m actually going to move out of the sector.”

Rental stock decline

Tom Bill said rental home supply continues to influence conditions.

He said: “The decline in available stock means tenants are competing more intensely in some parts of London.

“Landlords who remain are operating in a market where yields have adjusted alongside weaker sales prices.”

Ms Sedgwick also outlined her involvement in discussions with government and industry bodies during the legislative process.

More problems to come

She said: “My feeling was that this was in the Labour Party manifesto, and as such, they were going to implement it.

“So, regardless of whether or not they understood and were listening, I think that they’d reached the point where there was just no going back on this particular change in legislation.”

Further changes to rented homes will come with the Minimum Energy Efficiency Standard requirements, targeting an EPC C rating by 2030.

Ms Sedgwick said: “This particular change in legislation I think is going to be bigger and potentially more demanding because I don’t believe we’ve got the infrastructure to support it.”

Community of landlords

She continued: “We’re talking 1,800 properties per day that will need to be upgraded by October 2030.

“We don’t have the tradespeople because they’re busy building the 1.5 million homes that have been committed to from this government.”

She said the sector is shifting in structure, adding: “You’ve seen the move towards larger apartment blocks with concierges and gyms that have been built by insurance and investment companies.

“It is going to be a community of landlords that do this as part of their everyday roles as opposed to doing this just as a hobby or off the side of the desk.”


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Comments

  • Member Since January 2015 - Comments: 1450 - Articles: 1

    10:01 AM, 21st April 2026, About 4 days ago

    The PRS is a business that should be not a hobby and undertaken by those who do not know, and importantly do not understand, the legislation and regulations that govern this business.
    Personally I feel that these “hobby” landlords have been hugely responsible for the Renters Reform Bill and now Labour’s RRA. This is seeing good experienced PRS landlords leaving the sector not only the hobbyist landlords who haven’t a clue.
    But tenant action groups and government will reap what they have sown. The detriment will be to those renting and looking to rent with less to rent, higher rents as demand outstrips supply, more stringent vetting by remaining landlords and tent cities.

  • Member Since January 2024 - Comments: 351

    11:22 AM, 21st April 2026, About 4 days ago

    Reply to the comment left by Judith Wordsworth at 21/04/2026 – 10:01
    “Hobby landlords” does not mean bad landlords, so the PRS will lose a number of properties where tenants have been perfectly happy, albeit there may have been minor infringements of ever increasing regulations.

    I would class myself as a “hobby” landlord, with four properties. All of my tenants have been perfectly happy and most have been with me for years. But I am now throwing in the towel due to too much regulation, penal taxation, RRA, incoming changes to EPC and possibiity of high fines for minor infringements, etc., as well as thinking ahead to minimising IHT when I pop my clogs, which is much easier with cash than with properties.

    Four s21 notices hit the letterboxes of my unfortunate tenants and I will be selling up.

  • Member Since October 2020 - Comments: 1178

    2:26 PM, 21st April 2026, About 4 days ago

    Interesting term, hobby landlords. Conjures up images of people tinkering with tenancy agreements in their garden sheds. I cant imagine anyone doing this for fun.

  • Member Since June 2014 - Comments: 1564

    3:30 PM, 21st April 2026, About 4 days ago

    Sounds like lender wishful thinking.
    It’s easier for ‘hobby’ landlords to get out, it takes a lot longer for larger landlords to wind down.

  • Member Since September 2018 - Comments: 3538 - Articles: 5

    5:51 PM, 21st April 2026, About 4 days ago

    a hobby means something you for fun/relax. Was there ever such a category of LL?

    Has there ever been a category of tenant that even means this description is viable one?

  • Member Since September 2018 - Comments: 3538 - Articles: 5

    5:52 PM, 21st April 2026, About 4 days ago

    so hobby landlord’s out – to be replaced with socially caring corporates coming in???

  • Member Since December 2025 - Comments: 6

    7:33 PM, 21st April 2026, About 4 days ago

    I’m thinking now renting out properties is very high risk. Tenants don’t have much to lose with landlords not able to get rent upfront and unable to take a bond that would cover anything more than the cost of having to replace a cheap carpet in a small bedroom. Also Tenants can now have pets which more often than not result in a property having to be stripped of all carpets and underlay then having to disinfect the floorboards if you’re lucky or as often happens they cause extensive damage with scratching and chewing fixtures resulting in needing new kitchen units and rotten floors due to being constantly soaked in urine.
    I’m not going to be investing in anyone properties and I’m going to get rid of the worst Tenants by serving section 21 eviction notices this month. Then I’ll sell the properties as soon as they become vacant. Tenants have become very feckless over recent years. They know private landlords have no power and don’t care tuppence over causing damage. One recent example a tenant in a top floor flat had a washing machine that she had set up herself and she simply hung the waste pipe over the kitchen sink when using it. She’d left unattended whilst it spun and the pipe fell out of the kitchen sink causing a flood that went through all the flats below. She wasn’t bothered and said it was only occasionally the pipe fell out.
    If a landlord had power to make her pay towards extensive caused through negligence I know she’d take much more care like she does with her car.

  • Member Since February 2024 - Comments: 65

    9:48 PM, 21st April 2026, About 4 days ago

    This is just going to make it harder to get your property back when it come to selling it as fewer and fewer tenants either want to or can move.
    I used to have a house come free about once a year – I had 11 – I’ve sold a few already, but in every instance now I have to ask tenants to leave. It’s sad, and I don’t want to be doing it, but realistically I just don’t feel I have any other option than sell up over the next few years.

  • Member Since December 2023 - Comments: 1590

    4:16 PM, 22nd April 2026, About 3 days ago

    Hobby landlords? Really?

    The law doesn’t distinguish between hobby landlords, accidental landlords, professional landlords or any other adjective.

    We are landlords.

    The amount of work that is required to be a landlord is considerable. I would expect landlords with just a few properties to decide that the returns are not worth the effort.

    So, I would say, landlords with less than 4 x properties are likely to call it a day. This affects a significant number of tenants who will lose their homes.

  • Member Since March 2023 - Comments: 27

    4:53 PM, 22nd April 2026, About 3 days ago

    Reply to the comment left by Cider Drinker at 22/04/2026 – 16:16
    The Act wasn’t thought through What a surprise!!

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