Landlords are increasingly exiting the rental market ahead of the Renters’ Rights Act coming into force, as demand for rental properties continues to exceed supply. This trend, highlighted in Propertymark’s recent Housing Insight report for March 2026, signals ongoing challenges for the private rented sector throughout the year.
Landlord concerns and market pressures
The Propertymark report reveals that many landlords are choosing to sell their properties in response to the forthcoming regulatory changes introduced by the Renters’ Rights Act. This sell-off is occurring despite a modest increase in available rental stock, with demand still significantly outstripping supply. On average, there were seven applicants competing for each available property across member branches.
A Propertymark agent from the North East commented, “The UK government changes have upset many landlords who are now selling, giving agents a huge amount of work that will directly negatively affect profit and will ultimately mean rents will increase as rental property supply reduces.”
Nathan Emerson, Chief Executive of Propertymark, emphasised the impact of these concerns: “Many agents were reporting ongoing concern from landlords surrounding future regulatory changes, which were influencing investment decisions and contributing to longer-term supply challenges.” He stressed the importance of maintaining a stable and sustainable private rented sector to support tenants and preserve choice within the market.
Affordability pressures for renters
Tenant demand remains strong, but affordability continues to be a significant issue. Phil Spencer, founder of Move iQ, highlighted the ongoing challenges faced by renters: “In the rental market, competition remained fierce, with demand still heavily outweighing supply in many parts of the country.”
He added, “Renters continued to face affordability pressures, and concerns around future supply could keep the market challenging throughout the year. For consumers on both sides of the market, preparation and good advice remained more important than ever.”
Positive signs in the residential sales market
While the rental sector experiences pressure, the residential sales market showed encouraging activity in March 2026. The average number of sales agreed per member branch rose to 8.14, with new prospective buyer registrations increasing to 78 per branch.
Mr Emerson noted, “March was a month that delivered some encouraging signs across the housing market, with sales agreed, buyer registrations and viewing activity all moving in a positive direction as we entered the traditionally busier spring period.”
He acknowledged ongoing economic challenges, including inflation remaining above target and global pressures affecting market sentiment, but observed that many buyers were adapting to current borrowing conditions and proceeding where pricing expectations were realistic. Improved stock levels were helping to provide greater choice and create a more balanced environment in some areas, although affordability pressures persisted, particularly as mortgage rates remained sensitive to wider economic events.
What this means for landlords
The sell-off ahead of the Renters’ Rights Act suggests landlords are reassessing their investment strategies in light of regulatory uncertainty. Reduced rental supply may lead to increased rents as competition for properties intensifies, potentially impacting tenant affordability further. Landlords and agents should prepare for a challenging market environment where maintaining a sustainable portfolio and providing clear advice to tenants will be crucial.
At the same time, the uptick in residential sales activity may offer alternative opportunities for landlords considering their options. Staying informed about market trends and regulatory developments will be essential to navigate the evolving landscape effectively.
Source: Based on reporting from Property118
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Source: www.property118.com
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