Southampton Council confirms landlords are leaving the private rental market ahead of the Renters’ Rights Act implementation on 1 May, with council officers citing an uptick in no-fault evictions and single-property landlords selling up.
Council confirms landlord exit trend
Speaking at the housing scrutiny panel meeting on 5 March, Cllr Dave Shields, chairman of Southampton Council’s housing scrutiny panel, said: “I suspect, from my experience, there is an increase in the number of people receiving no-fault evictions. I wonder if that is linked to the fact that landlords are clearing the decks before the Renters’ Rights Act comes in.” Maria Byrne, head of housing need and support at Southampton Council, confirmed the observation. “I think your reflection is accurate. We are starting to see an increase in landlords exiting the market, whether that is single landlords potentially with one property, maybe thinking this is complex and maybe don’t want to be in it anymore,” she said. The Renters’ Rights Act – set to take effect from 1 May 2026 – will abolish Section 21 no-fault evictions, ban fixed-term tenancies and bidding wars, and limit rent increases to once per year. Landlords will only be able to recover possession using expanded Section 8 grounds, which require a specific reason such as selling the property, rent arrears or anti-social behaviour.
Council preparing for increased demand
Despite landlord withdrawals, Byrne suggested the legislation could provide greater stability for tenants. The council has updated its website with guidance on the new rules and staff are receiving training to provide accurate advice. “We can’t just solely rely on social housing. That’s not something we can do, and we really want to work with the private rented sector more,” Byrne said. “From a council’s perspective it’s making sure we’re working with landlords and having early intervention.” This follows Landlord Knowledge’s February report on the Lords debate where peers cited estimates that 110,000 landlords could exit the market in 2026. The Southampton confirmation adds local evidence to the national trend, suggesting smaller landlords are the most likely to sell ahead of the new rules. The withdrawal of single-property landlords – who typically account for a significant proportion of the private rented sector – could further constrain supply at a time when councils already struggle to meet housing demand through social provision alone.
What this means for landlords
- If you hold a single property: Consider whether the increased compliance requirements justify continued rental – but factor in CGT costs and lost rental income before deciding to sell.
- Watch for: Local councils ramping up engagement efforts with private landlords as they seek to maintain rental supply. Some may offer incentives or guaranteed rent schemes.
- Bottom line: Smaller landlords appear to be driving the pre-RRA exit trend – professional portfolios are more likely to adapt rather than sell.
Editor’s view
Southampton’s confirmation of what many suspected – smaller landlords are leaving – adds weight to warnings that the RRA could shrink supply precisely when demand remains strong. The council’s acknowledgement that it cannot meet housing need through social stock alone is a quiet admission that private landlords remain essential to the system.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 10 March 2026
Sources: Daily Echo, Southampton Council
Related reading: Section 8 evictions to cost landlords £3,000 as RRA takes effect
