Small landlords more likely to leave the market claims NRLA

Landlords who own just one property are nine times more likely to say they do not expect to remain landlords by the time the Renters’ Rights Act comes into force, according to a survey.

Data from the National Residential Landlords Association (NRLA) reveal that single-property landlords are more likely to leave the market than larger-portfolio landlords.

The news comes as the Renters’ Rights Act will come into effect on 1 May 2026.

Smaller landlords more likely to leave

According to the NRLA’s Quarter 4 Landlord Eye survey, 9% of single-property landlords said they did not expect to still be landlords when the reforms come into force, compared with 1% of landlords with multiple properties.

In the same quarter, in response to a separate question, 38% of single-property landlords said they were either “highly unlikely” or “unlikely” to remain landlords by the end of 2026, compared with 21% of multi-property landlords.

Many smaller landlords told the survey that being a landlord was no longer financially viable.

Around a third of landlords named the Renters’ Rights Act as a reason for exiting the market, while half (50%) pointed to issues related to tenants.

The NRLA suggested that single-property landlords considering leaving are more likely to reference tenant relationships, evictions, Section 21, and the difficulty of regaining possession.

Anti-landlord rhetoric from the government

A single property landlord from Inner London told the survey: “New legislation, anti-landlord rhetoric from the government and very high-risk factors make the private rented sector no longer a viable occupation or investment. It is now way too stressful.

“I have only one rental property left and I’m hoping the tenants will leave willingly so that I can sell it. It is breaking my heart, as I have never, in 32 years as a landlord, ever evicted any tenants.

Another single property landlord from the North West said: “I will continue until my tenant leaves, as I do not want to make her homeless, but then I will sell.

“For a landlord with just one property let at low rent to provide a home the new legislation, extra bureaucracy and nonsensical way in which things like EPC ratings are set make it too stressful to continue.”

Damp and mould concerns

The survey also reveals the pressures landlords are facing with damp and mould and the Decent Homes Standard.

The NRLA survey reveals 30% of landlords advise their tenants on ventilation, heating

and lifestyle factors that may contribute to damp and mould, with nearly half (48%) saying differentiating between building and lifestyle causes is the biggest practical challenge when dealing with damp and mould.

Under the Renters’ Rights Act, Awaab’s Law will be extended to the private rented sector (PRS), where landlords will have to fix damp and mould within strict timeframes.

The government has not yet confirmed a date for implementation, but Awaab’s Law is expected to come into force during phase three of the Act, in 2027.

However, landlords are concerned that they will be held responsible for issues beyond their control.

A portfolio landlord from Yorkshire told the survey: “Elements relating to decent homes and condensation, particularly in situations when the problem is solely caused by the tenant but I will somehow be responsible for solving a problem I can’t solve and face significant penalties when I can’t solve it!”

One in five landlords say they are fully confident in navigating the Housing Health and Safety Rating System (HHSRS), but they urge the government to provide clearer guidance and access to qualified assessors to help them comply with requirements.