## Landlords Selling Properties as Legislation Approaches

A new report from Propertymark highlights growing concern among UK landlords about the forthcoming Renters’ Rights Act. Agents across the country report a noticeable increase in landlords selling their rental properties rather than continuing to let them. One member agent from the South West explained: “The Renters’ Rights Act has made more landlords panic and ask for notice to be served before the changes. All are selling their properties, and we do not have any other properties available to offer to existing tenants.”

This exodus is contributing to a tightening rental market, with existing tenants reluctant or unable to move due to limited supply. The agent warned this could lead to overcrowding as families grow but cannot afford or find larger homes.

## Rental Supply Shortages and Rising Rents

Despite some signs of market stabilisation, such as a slight increase in new property instructions, the overall sentiment among landlords remains negative. A Home Counties agent noted: “Most landlords are responsible, and it is the minority of bad landlords and bad tenants who are destroying the market, and the consequence will be a considerably reduced number of properties to rent, which will raise rents, which will help no one.”

The report confirms that demand continues to outstrip supply, with an average of six applicants per property at member branches. This imbalance is pushing rents upwards, exacerbating affordability pressures for tenants.

## Urgent Need for Clarity on Rental Reform

Nathan Emerson, chief executive of Propertymark, emphasised the importance of clear government guidance to prevent further contraction in rental supply. He stated: “Greater clarity around rental reform is urgently needed to reassure landlords and prevent further contraction in supply, which would only intensify pressures for tenants.”

The report also notes a slight increase in rental arrears, now reported by 4% of member agents, signalling growing affordability challenges as legislative uncertainty weighs on landlords.

## Hesitation Among Landlords to Re-let or Expand Portfolios

Phil Spencer, founder of MoveiQ, commented on the impact of regulatory uncertainty on landlord behaviour: “Uncertainty around the Renters’ Rights Act is making some landlords hesitant to re-let or expand their portfolios. Until there is greater clarity and confidence in the regulatory environment, renters are likely to continue feeling the impact of a highly pressured and competitive market.”

This hesitation could further reduce available rental properties, limiting tenant choice and increasing competition for homes.

## Active but Fragile Housing Market

The sales market shows mixed signals. The average UK house price rose slightly to £271,000 in December 2025, and new prospective buyer registrations increased to an average of 74 per member branch. However, around 30.4% of housing transactions took longer than 17 weeks to complete, indicating ongoing market fragility.

Mr Spencer observed: “More buyers are registering, but viewings have dipped, and a high proportion of properties are still selling below asking price. That tells us people are interested, but they’re being very price-sensitive and far less willing to overstretch themselves.”

## What This Means for Landlords

Landlords should be aware that the current climate of uncertainty and legislative change is influencing market dynamics, with many peers exiting the sector or holding back on letting new properties. This could lead to increased demand and higher rents, but also greater scrutiny and potential challenges in managing tenancies under new regulations. Staying informed and seeking clarity on upcoming reforms will be crucial for landlords to navigate this evolving landscape.