New research from the National Residential Landlords Association (NRLA) highlights a growing concern among small landlords, particularly those with a single property, who are significantly more likely to consider leaving the rental market ahead of the Renters’ Rights Act coming into force on 1 May 2026.

Smaller landlords more likely to exit the market

The NRLA’s Quarter 4 Landlord Eye survey reveals that 9% of landlords owning just one property do not expect to remain landlords once the new legislation is implemented, compared with only 1% of those with multiple properties. Furthermore, 38% of single-property landlords indicated they were “highly unlikely” or “unlikely” to continue as landlords by the end of 2026, a stark contrast to 21% of multi-property landlords expressing similar sentiments.

Financial viability is a key factor driving this trend, with many smaller landlords reporting that the role is no longer economically sustainable. Approximately one-third of landlords cited the Renters’ Rights Act as a reason for considering exit, while half pointed to tenant-related challenges.

The NRLA suggests that single-property landlords are particularly affected by difficulties in tenant relationships, evictions, the abolition of Section 21 notices, and the complexities involved in regaining possession of their properties.

Impact of government rhetoric and legislation

Several landlords shared personal accounts reflecting the strain caused by recent legislative changes and government attitudes. One single-property landlord from Inner London commented: “New legislation, anti-landlord rhetoric from the government and very high-risk factors make the private rented sector no longer a viable occupation or investment. It is now way too stressful.” This landlord hopes to sell their remaining property once tenants leave voluntarily, despite never having evicted tenants in 32 years.

Similarly, a landlord from the North West expressed a commitment to continue until their tenant leaves but plans to sell thereafter, citing the stress caused by new legislation, increased bureaucracy, and regulatory requirements such as EPC ratings.

Damp, mould, and the Decent Homes Standard

The survey also highlights the challenges landlords face regarding damp and mould issues, which are set to become more pressing under the Renters’ Rights Act. Currently, 30% of landlords advise tenants on ventilation, heating, and lifestyle factors that may contribute to these problems. Nearly half (48%) identify distinguishing between building defects and tenant behaviour as the greatest practical challenge in managing damp and mould.

Awaab’s Law, which mandates landlords to address damp and mould within strict timeframes, will be extended to the private rented sector as part of the Act’s phase three, expected in 2027. However, landlords express concern about being held responsible for problems beyond their control. A portfolio landlord from Yorkshire remarked: “Elements relating to decent homes and condensation, particularly in situations when the problem is solely caused by the tenant but I will somehow be responsible for solving a problem I can’t solve and face significant penalties when I can’t solve it!”

Only one in five landlords feel fully confident navigating the Housing Health and Safety Rating System (HHSRS), and many call for clearer government guidance and access to qualified assessors to help meet compliance requirements.

What this means for landlords

The findings underscore the disproportionate impact of upcoming regulatory changes on smaller landlords, who may find the increased administrative burden and financial pressures untenable. The potential exit of single-property landlords could reduce rental supply, particularly in lower-rent segments, affecting tenant choice and market stability.

Landlords will need to prepare for stricter standards on property conditions and tenant relations, especially concerning damp and mould, while seeking support to navigate complex compliance frameworks. The government’s approach to enforcement and communication will be critical in shaping landlord confidence and retention in the sector.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

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TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/