Housing Minister Matthew Pennycook has dismissed concerns that increased regulation will force small landlords out of the private rented sector. Speaking during a parliamentary debate, he emphasised that not all regulation is detrimental and highlighted the benefits of the forthcoming Renters’ Rights Act for landlords and tenants alike. This clarification is significant for landlords navigating the evolving regulatory landscape and seeking to understand how new laws may impact their businesses.

Concerns over regulation and its impact on small landlords

During an oral questions session to the Housing, Communities and Local Government department, Conservative MP Edward Leigh raised concerns that imposing additional regulations on small landlords could reduce the supply of rental properties. He argued that this reduction would exacerbate rent inflation and ultimately harm vulnerable tenants who rely on affordable private rented accommodation.

Mr Leigh stated: “We all know that rent inflation is caused by over-demand and lack of supply, and we can agree on the need to address problems by building more houses and tackling immigration. Does the Minister agree that the more controls and regulations are imposed on landlords, particularly small landlords, the more they will get out of the rented sector altogether, causing less supply and rent inflation, which will hit vulnerable people?”

Minister’s response: regulation can be beneficial

In response, Housing Minister Matthew Pennycook rejected the notion that all regulation is harmful. He acknowledged the importance of increasing housing supply across all sectors, including private rented accommodation, and stressed the government’s support for the build-to-rent sector as a key component of future housing supply.

Mr Pennycook explained: “I do not accept that all regulation is bad. In many ways, we have clarified and made simpler the grounds for possession that landlords can use under the Renters’ Rights Act, but he is absolutely right to say that we need more supply of all homes, including in the private rented sector, and that we need to support the build-to-rent sector, which will be an important part of the market in coming years.”

This statement highlights that the Renters’ Rights Act aims to streamline possession processes, potentially making it easier for landlords to manage their properties while ensuring tenant protections remain in place.

Government stance on rent controls

Labour MP Dan Carden welcomed the Renters’ Rights Act’s provisions to challenge unfair rent increases but expressed concern that using market rents as a benchmark might not prevent unaffordable rent hikes. He called for the introduction of rent controls to address this issue.

Mr Pennycook clarified the government’s position, stating that rent controls are not part of current policy. He said: “We will of course, keep the implementation of the Act under continual review, but, as I have said, it allows tenants to challenge unreasonable rent increases at the first-tier tribunal, which will make a judgment on whether the increases are fair and meet that market-rate definition. We have, however, made it clear that the government do not support the introduction of rent controls, including rent stabilisation measures, for the reasons that we debated at some length during the passage of the bill.”

This confirms that while tenants have recourse against excessive rent increases, the government prefers market-based solutions over direct rent control measures.

Implications for landlords and agents

For UK landlords and letting agents, these developments underscore the importance of understanding new regulations such as the Renters’ Rights Act, which will come into effect on 1 May 2026. The Act aims to balance tenant protections with landlord rights, simplifying possession grounds and providing a tribunal mechanism to challenge unfair rent increases.

Landlords should prepare for these changes by reviewing their tenancy agreements and possession procedures to ensure compliance and to take advantage of the clearer legal framework. Agents can support landlords by advising on these regulatory updates and helping to manage tenant relations effectively.

Moreover, the government’s support for the build-to-rent sector signals potential growth opportunities for investors and landlords specialising in this area, which may become an increasingly important part of the rental market.

Upcoming support for landlords through TLA’s Trusted Partners Hub

The Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. It will include legal, trades, insurance, financial, mortgage, tenant screening, and other essential services.

Service providers interested in joining the Trusted Partners Hub are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/. This initiative aims to streamline access to trusted services, helping landlords navigate regulatory changes and manage their properties more effectively.