Landlords leaving the market as Renters’ Rights Act looms

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Landlords leaving the market as Renters’ Rights Act looms

Landlords are panicking and exiting the market before the Renters’ Rights Act, a new report has claimed.

Propertymark’s Housing Insight report features comments from member agents across the country who warn that landlords are hesitant to re-let or expand their portfolios.

Propertymark is calling for more clarity around rental reform to reassure landlords.

Landlords are selling

A Propertymark member agent from the South West told the report: “The Renters’ Rights Act has made more landlords panic and ask for notice to be served before the changes. All are selling their properties, and we do not have any other properties available to offer to existing tenants.

“Existing tenants are not moving due to a lack of supply, and this could lead to overcrowding as existing families grow and cannot move to a larger property, either due to financial constraints or lack of supply.”

Another member agent told the report that whilst there are some positives in the rental market, tenants will suffer as rents will rise.

A Home Counties Propertymark member agent said: “The market has stabilised slightly, three new property instructions are a welcome sign.

“Landlords are very negative about the forthcoming changes in legislation, to which I agree, although I try to give positive vibes. The new taxes and the move to Renters’ Rights take me back to the pre- 1988 Housing Act.

“Most landlords are responsible, and it is the minority of bad landlords and bad tenants who are destroying the market, and the consequence will be a considerably reduced number of properties to rent, which will raise rents, which will help no one.”

Clarity around reform urgently needed

According to the report, demand still continues to outpace supply with the average number of applicants per member branch sitting at around six people per property.

The report also reveals the number of member agents reporting problems with rental arrears increased to 4%.

Nathan Emerson, chief executive of Propertymark, said the government must provide more clarity over rental reform to prevent further contraction in supply.

He said: “In the lettings sector, demand continues to significantly outpace supply, despite a modest uplift in available stock and fully managed instructions. Void periods remain relatively short, underlining how competitive the rental market still is, while rents continue to rise year on year, albeit at a slowing pace.

“Affordability pressures are becoming more visible, with rental arrears increasing and many landlords expressing concern around forthcoming legislative changes. Greater clarity around rental reform is urgently needed to reassure landlords and prevent further contraction in supply, which would only intensify pressures for tenants.”

Uncertainty is making landlords hesitant

Phil Spencer, founder of MoveiQ, said: “For renters, the picture remains tough. Demand is still far higher than supply, and although rental growth is slowing, average rents remain elevated across the UK.

“Short void periods show that well-priced homes are being snapped up quickly, leaving tenants with limited choice and little negotiating power.

“At the same time, uncertainty around the Renters’ Rights Act is making some landlords hesitant to re-let or expand their portfolios. Until there is greater clarity and confidence in the regulatory environment, renters are likely to continue feeling the impact of a highly pressured and competitive market.”

A market that’s active but fragile

For the sales market, the UK average house price showed slight growth month on month at £271,000.

The average number of new prospective buyers registered per member branch saw an upward trend, with an average of 74 in December 2025.

However, in December 2025, on average, around 30.4 % of housing transactions take longer than 17 weeks to complete.

Mr Spencer said: “For buyers and sellers, this feels like a market that’s active but fragile. More buyers are registering, but viewings have dipped, and a high proportion of properties are still selling below asking price.

“That tells us people are interested, but they’re being very price-sensitive and far less willing to overstretch themselves. Long transaction times are also taking their toll, increasing the risk of fall-throughs and adding stress to what is already a demanding process.

“While lower interest rates offer some encouragement, affordability remains stretched for many households, meaning buyers are proceeding carefully and sellers need to be realistic on pricing if they want to secure a sale.”

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