Recent policy reversals in New Zealand and Portugal, where governments have eased rental regulations following significant landlord departures, have raised concerns for the UK’s approach to rental reforms. These international examples highlight the risks of stringent landlord regulations, prompting calls for the UK government to reconsider its planned Renters’ Rights Act reforms.

International Policy Reversals and Their Impact

New Zealand and Portugal have both recently reversed or softened rental regulations after stricter laws led to a reduction in rental property supply. In New Zealand, the government reinstated no-fault evictions in January 2025, reversing a 2020 ban introduced under former Premier Jacinda Ardern. This ban had caused a squeeze in rental supply, forcing ministers to allow landlords to end periodic tenancies without a specific reason, provided they give 90 days’ notice. Shorter notice periods of 42 days apply if landlords or their family members need to move in, while fixed-term agreements can end without cause at the end of their term.

Similarly, Portugal is consulting on plans to reduce income tax on residential rents to 10%, down from current rates ranging between 12.5% and 48% on global earnings, according to PwC. Proposed measures include a 0% tax rate on rents priced at least 20% below local averages and reduced rates for longer tenancies, falling to 5% for tenancies exceeding 20 years.

Lessons for the UK Rental Market

These policy reversals abroad demonstrate the consequences of regulations that push landlords out of the market, leading to reduced rental supply and increased pressure on tenants. Industry experts warn that the UK risks a similar outcome if it continues with its current reform trajectory.

Despite these warnings, the UK government is proceeding with the Renters’ Rights Act (RRA), which will take effect in England from May 2026. The RRA will abolish Section 21 ‘no-fault’ evictions, meaning landlords will face waits of up to eight months to repossess their properties. This change has already contributed to an increase in landlords selling their rental homes. For example, in July 2025, 22% of newly listed homes for sale in London were former rental properties, up from 15.6% the previous year. This reduction in rental stock has driven average asking rents in London to a record £2,736.

Industry Concerns Over the Renters’ Rights Act

Ben Beadle, Chief Executive of the National Residential Landlords Association (NRLA), described the RRA as “a disaster waiting to happen.” He highlighted concerns that landlords already face lengthy waits to regain possession of their properties, and that the situation will worsen once the RRA comes into force and an increased number of possession claims are made.

Campaigner Paul Shamplina emphasised the contrast between the UK and countries like New Zealand and Portugal, stating: “We seem to be doing everything possible to make landlords feel unwanted, while still expecting them to house millions of tenants.” He warned that unless the UK follows suit in easing regulations, more landlords will exit the market, exacerbating the housing shortage and negatively impacting tenants.

Greg Tsuman of Martyn Gerrard noted that New Zealand provides a clear example of the difficulties in reversing damage caused by policies that drive private landlords away. Megan Eighteen from Propertymark reinforced this view, stating that increased regulation and taxation without adequate support risks shrinking rental supply and pushing up rents. She added that overseas governments recognise “that landlords play a crucial role in housing delivery.”

Implications for UK Landlords and Agents

For UK landlords and letting agents, these developments underscore the importance of monitoring regulatory changes and their potential impact on rental supply and market dynamics. The removal of no-fault evictions and extended possession timelines may increase the complexity and cost of managing rental properties, potentially discouraging investment in the private rented sector.

Agents and landlords should prepare for a more challenging operating environment, with potential increases in void periods and legal costs. Maintaining good tenant relationships and proactive property management will be essential to mitigate risks associated with longer possession processes.

Looking Ahead: Support for Landlords

In response to the evolving landscape, the Tenants’ and Landlords’ Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This initiative will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest to become TLA service partners via the association’s website.