A third of UK letting agents say small landlords are already quitting the rental market—citing the Renters’ Rights Bill as a key factor—sparking fresh fears that dwindling supply will drive rents up and destabilise the sector unless urgent reforms are rethought.
Landlords selling up as red tape, mortgage costs, and reform collide
A new industry survey from property software firm Alto paints a bleak picture for UK landlords. Of 250 letting agents questioned, 34% reported a noticeable rise in small landlords selling up, while a staggering 93% said they feared losing their independent clients entirely.
“The pressure is relentless,” said Riccardo Iannucci-Dawson, CEO of Alto (pictured). “Independent landlords are the lifeblood of the sector. If we lose them, tenants lose choice and stability—and we risk pushing rents even higher.”
Landlords owning just one or two properties—often bought for pension income or inherited—are bearing the brunt. Between rising mortgage rates, looming EPC upgrade costs, and now the Renters’ Rights Bill, many are simply calling it quits.
Most alarmingly, 70% of letting agents surveyed said at least some of their landlord clients had already sold one or more properties in the past 12 months.
Section 21 repeal and fixed-term ban drive fear of regulatory overreach
While tenant lobbyists have hailed the Renters’ Rights Bill as overdue, landlords and agents warn it could backfire dramatically. The planned abolition of Section 21 ‘no-fault’ evictions and the move to indefinite tenancies has many landlords re-evaluating their risk exposure.
“If the government wanted to drive landlords out, this is the playbook,” said Martin Webb, a Kent landlord with two rental properties. “I’ve kept my tenants for years, but if I lose the right to regain my property without a court battle, I might as well sell up.”
This sentiment is echoed across the UK, where smaller landlords—often with tight margins and little appetite for prolonged disputes—are pulling out before reforms take full effect.
Iannucci-Dawson added: “Legislative upheaval and operational chaos are now baked into the letting agent’s job. It’s not just about finding tenants anymore—it’s about navigating policy risk.”
Agents brace for landlord loss as reform accelerates
In response, letting agents are adapting fast. Alto, which supports over 25,000 agents nationwide, says the pace of reform has left many scrambling to stay compliant.
“Agents need more than just policy updates—they need systems that can handle new rules automatically,” said Iannucci-Dawson. “That’s why we’re rolling out tools for everything from Right to Rent checks to automated tenancy rollovers.”
By digitising admin-heavy processes and reducing legal risk, Alto hopes to support agents in keeping their landlords engaged. But many in the industry believe government intervention is needed too.
“There’s a worrying assumption that corporates will fill the gap left by small landlords,” said Fiona Lewis, a regional letting manager in the West Midlands. “That’s not how housing works in practice. Families want local, flexible, human landlords—not faceless investors.”
The exit of small landlords isn’t theoretical—it’s already happening, and it’s no longer confined to overheated London boroughs. From Durham to Devon, the ripple effects of reform are being felt in reduced supply, rising rents, and stressed-out agents struggling to hold it all together.
