The government has admitted it has not assessed the potential impact of banning landlords from re-letting their properties for 12 months if a sale falls through – a key clause in the Renters’ Rights Act that has alarmed landlord groups and property investors.
No analysis on landlord impact or empty homes
Under the new law, landlords who use mandatory possession ground 1A to evict a tenant in order to sell must wait a full year before re-letting the property if the sale collapses. The measure, ministers claim, is intended to “prevent abuse” of sale-related evictions.
However, in a written parliamentary question, Shadow Housing Secretary James Cleverly asked whether the Department for Housing, Communities and Local Government had carried out any analysis on the likely number of empty homes that could result.
Housing Minister Matthew Pennycook’s response was blunt: “My Department has made no such assessment. Landlords making use of new mandatory possession ground 1A (sale of dwelling-house) will be expected to sell their property with vacant possession as intended.”
He added that the restriction was designed to “remove the financial incentive to landlords from misusing the grounds and evicting a tenant with the intention to re-let at a higher rent.”
Critics warn of unnecessary punishment for landlords
Landlords and property experts say the rule is another example of policy written without practical understanding of how the housing market works. Sales can collapse for reasons entirely outside a landlord’s control — buyer financing issues, conveyancing delays, or even failed chains — yet the legislation will effectively trap affected landlords from re-letting for a year.
Industry figures argue this risks creating hundreds, if not thousands, of unnecessary void properties. The National Residential Landlords Association (NRLA) previously warned that such restrictions would “punish legitimate landlords for market forces they cannot control” and contribute to localised shortages in rental stock.
Despite a cross-party effort in the House of Lords to reduce the period from twelve months to six, the amendment was voted down. The Renters’ Rights Act subsequently gained Royal Assent and is now law, though the government has yet to confirm when its provisions will come into force.
Growing concern over supply and confidence in the private rented sector
Property market analysts say the government’s decision not to model the effect of the rule could have long-term implications for housing supply. According to ONS data, private rental listings have already fallen by 34% over the past five years, while demand per listing has nearly doubled in the same period.
With mortgage costs high and tax burdens rising, many landlords are already scaling back portfolios or exiting altogether. A forced 12-month re-letting ban, observers warn, will further discourage investment — particularly for landlords in chains or small developers reliant on sales to fund future projects.
As one London letting agent told Landlord Knowledge, “The idea that landlords will keep a property empty for a year just to ‘get one over’ on tenants is absurd. In most cases, it’s the owner who suffers financially — not the tenant. This policy will only lead to fewer homes available to rent.”
Editor’s view
The Renters’ Rights Act continues to expose deep flaws in policymaking. A 12-month re-letting ban without impact assessment represents a punitive approach to property ownership, not a balanced one. If the government genuinely wants a functioning private rented sector, it must start treating landlords as partners in housing delivery, not adversaries. Otherwise, fewer homes, longer voids, and higher rents will be the inevitable outcome.
Author: Editorial team — UK landlord & buy-to-let news, policy, and finance.
Published: 4 November 2025
Sources: UK Parliament Written Questions, Department for Housing, NRLA, ONS Housing Data
Related reading: Government rejects County Court review as landlords face record eviction delays
