‘Six-month fire sale’ looms as Renters’ Rights Act nears

Critics of the Renters’ Rights Act have warned of a “six-month fire sale” as landlords rush to sell before the act comes into force.

The government announced the Renters’ Rights Act will come into effect on 1 May 2026, with rules including landlords no longer being able to use Section 21 evictions, and fixed-term tenancies being converted to periodic tenancies.

Industry experts have warned the six-month window could trigger a “burst of landlords selling up,” leaving tenants struggling to find homes and driving up rents.

Working people will suffer the consequences

James Cleverly, the shadow Housing Secretary, warns working people will suffer under the Renters’ Rights Act.

He told The Telegraph: “The government claims the changes will give tenants security, but with a start date of May 2026, we are now set for a six-month fire sale with tenants forced out at short notice and working people will suffer the consequences.”

Greg Tsuman, of Martyn Gerrard Estate Agents, also told The Telegraph the timing of the act would leave room for a “potential burst of landlords selling up in anticipation of the laws”.

Wreak havoc on the private rented sector

As previously reported on Property118, critics have warned that the act could backfire on tenants.

The Foundation for Economic Education (FEE) think-tank published a piece on its website by Reem Ibrahim, arguing that the act could wreak havoc on the private rented sector and leave tenants struggling.

Ms Ibrahim wrote many landlords may sell up, unwilling to take on the risks of being a landlord. She warns that landlords will become more selective, which could have the opposite effect of the Act’s intended purpose.

She said on the FEE website: “The smaller rental market means less competition for tenants. Because it will be extremely difficult to evict tenants, landlords will be much more selective about who they allow to rent their property. This incentivises discrimination against those regarded as riskier tenants, younger people, the self-employed, and those with less financial security.

“The rental market would be systematically geared toward older tenants with stable, regular incomes or those who can count on help from Mum and Dad. Again, this is the exact opposite of what the government supposedly intends to achieve.”

Property118 commercial reality check

Some landlords will decide to sell in the coming months. This is not a retreat. It is strategic housekeeping by business owners who understand their balance sheets and refuse to be boxed in by legislative uncertainty. A controlled exit from selected assets is a legitimate commercial decision that strengthens long-term resilience.

What landlords should do next

Document and audit readiness. Bring tenancy files, safety records, mortgage details and valuation notes into a clean, organised pack. Strong documentation protects you whether you plan to hold, refinance or sell.

Scenario modelling with clear numbers. Run two and three-year projections across rents, voids, maintenance and gearing. These models provide calm, fact-led clarity when emotions and headlines push the opposite direction.

Strategic disposals on your own terms. Some landlords are choosing to exit certain units to rebalance risk or simplify operations. If you are considering selling, it is worth reviewing this guide on calculating Capital Gains Tax by clicking here before making any decisions: