Landlords sell properties as UK Renters' Rights Bill nears law

Landlords are selling properties in anticipation of the Renters' Rights Bill becoming law, with some small landlords saying they want to exit the private rental market rather than face the planned changes.

Patricia Ogunfeibo, 61, who has rented out properties since 1986, said she sold a two‑bedroom flat in south‑east London — one of nine she has owned — to "come out of being a landlord". She told the BBC she accepted that parts of the legislation were needed but worried the reforms could push rents higher as some landlords leave the sector.

The Renters' Rights Bill would ban Section 21 "no‑fault" evictions, give new tenants a 12‑month protected period during which landlords could not evict them for reasons such as the owner wanting to live in or sell the property, and require landlords to give four months' notice with a specific reason to end a tenancy after the first year. The proposals also include measures to allow tenants to challenge unfair rent increases, make it illegal to discriminate against prospective tenants receiving benefits, curb bidding wars that push tenants above advertised prices, and enable tenants to request permission to keep pets. Landlords would still be able to seek possession for tenant criminal behaviour or other specified grounds.

Market data and industry groups say the prospect of the bill is already affecting landlord behaviour. The Property Franchise Group, which runs brands including Hunters, Fine & Country and EweMove, reported it was managing 153,000 rental homes last year but that number had fallen to about 150,000 at the last count. Knight Frank found the number of new lettings coming to the London market in the year to August was 8% lower than the previous 12‑month period.

Chris Norris, chief policy officer at the National Residential Landlords Association (NRLA), said the bill would be a major factor for many landlords deciding their futures and warned that courts must have the capacity to process legitimate possession cases quickly once Section 21 ends. "Given this, amidst a lack of rental housing to meet demand, it's vital that the bill has the confidence of responsible landlords every bit as much as tenants," he said.

A 2021 SpareRoom survey of 821 landlords found smaller landlords were more likely to plan to leave the market: 40% of those with one to two rental properties said they intended to exit, compared with 22% of landlords with five to nine properties and 26% of those with more than 10. SpareRoom said the room‑rental market had so far remained largely unaffected and that January 2025 was the busiest month for flatshare ads in four years.

Tenants and campaigners have broadly welcomed the measures. Natasha Johnson, who was evicted under Section 21 in 2020 with her teenage son during the Covid pandemic, described the experience as traumatic and said the reforms were "welcome news". She now campaigns with the London Renters Union (LRU) and said the change would help tenants avoid sudden homelessness and the disruption of moves that can affect children and family life.

LRU spokesperson Jae Vail said ending Section 21 was "a big victory for tenants everywhere" but warned that soaring rents would still force many from their homes. He called for rent control, arguing it would keep prices down and maintain communities, and accused the government of siding with wealthier landlords rather than renters.

A ministry spokesperson said the bill remained on track to become law this year, calling it a manifesto commitment and a legislative priority for the government. The spokesperson said the measure would "level the playing field by providing tenants with greater security, rights and protections in their homes" and that its transformational powers would be implemented swiftly after enactment.

Landlords such as Ogunfeibo said they supported parts of the reform, including a proposed Private Rented Sector Database intended to help landlords understand legal obligations and demonstrate compliance. But she and others warned that if too many landlords sell up, the supply of private rented housing could shrink, putting further upward pressure on rents in an already tight market.

The debate underscores tensions between protecting tenants from abrupt eviction and preserving supply and investment in the private rental sector. Industry groups want assurances on court capacity and implementation details, while tenant organisations press for stronger safeguards, including limits on rent rises, to ensure the promised security translates into stable, affordable homes.

If the bill becomes law this year as planned, landlords and tenants will face a reshaped legal framework governing possession, rent disputes and letting practices, with both sides awaiting further details on implementation and transitional arrangements.