UK landlords are increasingly selling properties ahead of the Renters’ Rights Bill, which will introduce major reforms such as ending “no-fault” evictions, giving tenants stronger rights to challenge rent increases, and banning discrimination against benefit claimants. The legislation, combined with speculation over tax changes on rental income, is prompting some landlords—especially smaller portfolio owners—to exit the market.
Market data suggests this is already having an impact. A survey of 250 letting agents found that 34% had noticed more landlords selling or planning to leave the sector, while the Royal Institution of Chartered Surveyors (RICS) reports a net balance of − 21% for landlord instructions, indicating a decline in landlords willing to rent out properties. Meanwhile, in the first quarter of 2025, 15.6% of new property sale instructions were for homes that had been rented in the prior three years, up from 9.8% the previous year.
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The rental market remains tight. Rightmove reports that there are 27% fewer available rental properties than in 2019, with the average advertised rent now £1,577 per month, a rise of 2.9% year-on-year and 46% higher than at the start of the pandemic. This supply-demand imbalance, combined with high rents, may reinforce landlords’ decisions to sell.
While the Renters’ Rights Bill is designed to strengthen tenant protections, the risk is that reduced landlord participation could worsen rental shortages, further driving up prices. Policymakers will need to monitor the market carefully to ensure reform does not unintentionally limit rental supply.
There is clear evidence that some landlords are selling ahead of new legislation. Tenants may benefit from stronger rights, but with fewer homes on the market and record-high rents, the sector faces significant challenges in balancing protection and supply.