A major shift in Britain’s rental housing market is unfolding as hundreds of landlords across England prepare to exit the sector ahead of Labour’s sweeping rental reforms, raising concerns over rising rents, housing shortages, and growing pressure on tenants already struggling in a tight market.

According to a new survey by Allsop, nearly 42 percent of more than 1,000 landlords questioned said they plan to stop renting out homes once the government’s Renters’ Rights Act comes into force on May 1. Almost half 48.4 percent said they intend to sell some or all of their rental properties, while many others are considering rent increases to offset mounting costs.

The legislation represents the most significant reform of the private rented housing sector in a generation. It is designed to strengthen tenant protections by banning Section 21 “no-fault” evictions, limiting rent increases to once per year, and giving renters greater long-term security in their homes.

Labour argues that the law is necessary to end unfair evictions and improve living standards for millions of tenants across the country. However, property experts, landlords, and housing groups warn that the reforms may unintentionally reduce the number of available rental homes and make affordability even worse.

The concern is particularly sharp among smaller landlords, many of whom say they are already under financial strain from higher mortgage rates, increased taxation, and stricter energy efficiency requirements for rental properties.

Seb Verity of Allsop said many landlords he had spoken to were deeply discouraged by the cumulative burden of regulation and rising costs.“The weight of regulatory change, layered on top of mortgage rate rises, higher taxes and meeting energy efficiency requirements, is testing the resolve of a large cohort of smaller landlords,” he said.

He added that while many aspects of the Renters’ Rights Act are well intentioned, its long-term success depends on whether the government can address the wider housing shortage.“Much of what it seeks to do is welcome, but in the absence of a more effective strategy to increase housing supply and affordability, it may well end up serving only to add to or compound existing housing challenges,” he said.

Britain’s housing market has faced years of supply shortages, with too few new homes being built to meet demand. Housebuilders and industry bodies have repeatedly warned that Labour may struggle to meet its ambitious target of building 1.5 million homes by 2029.If landlords continue to leave the buy-to-let market, experts say the supply of rental properties could shrink further, pushing rents even higher and reducing options for families, students, and young professionals.

The reforms are also prompting fears of a short-term wave of tenant evictions before the ban on Section 21 notices officially begins. Some landlords may choose to remove tenants now while they still retain that legal option.Legal advice firm Landlord Action reported a 43 percent increase in Section 21 instructions during the first three months of 2026 compared with the same period last year, suggesting that some landlords are already acting in anticipation of the law.

However, Housing Minister Matthew Pennycook has rejected fears of a major eviction spike, stating that the government does not expect a significant surge.The Ministry of Housing, Communities and Local Government also pushed back against claims of a landlord exodus, saying there is no clear evidence that the private rented sector is collapsing.

A government spokesman said the rental market has doubled in size since the early 2000s and insisted that responsible landlords have little to fear from the reforms.“Good landlords who provide quality homes have nothing to fear from the Renters’ Rights Act, which will give millions of tenants stronger rights and more security in their homes,” the spokesman said.

The debate highlights a long-running tension in British housing policy: how to protect renters without discouraging investment in the rental market itself.Tenant advocacy groups argue that stronger legal protections are long overdue. For years, renters have faced insecurity, sudden rent hikes, and the threat of eviction with little warning.

Campaigners say the end of no-fault evictions will provide basic housing stability for millions.Landlords, however, argue that the reforms remove flexibility and control over their own properties, particularly in dealing with difficult tenants or changing financial circumstances.

The roots of the legislation stretch back to 2023, when former housing secretary Michael Gove first introduced a bill to reform the private rental sector. That proposal failed to pass before Parliament was dissolved for the general election. After winning power, Labour introduced a revised version and moved quickly to bring it into law.

Now, as implementation begins, both tenants and landlords are watching closely.For renters, the reforms promise greater security and fairness. For landlords, they signal a future with tighter regulation and narrower profit margins.

For the broader housing market, the outcome may depend on whether Britain can solve its deeper problem the simple lack of enough homes.If supply continues to fall while demand rises, stronger tenant rights alone may not be enough to prevent rents from climbing higher.

The Renters’ Rights Act may transform how Britain rents, but whether it solves the housing crisis or intensifies it remains uncertain.Short SummaryThousands of landlords across England are considering leaving the rental market as Labour’s Renters’ Rights Act takes effect on May 1. The law bans no-fault evictions and limits rent increases, aiming to protect tenants.

However, landlords warn that rising taxes, mortgage costs, and stricter regulations may force them to sell properties or increase rents. Experts fear this could reduce rental supply and worsen Britain’s housing shortage.

England’s private rental sector is entering one of its most significant legal transitions in decades as the government’s Renters’ Rights Act comes into force on May 1, reshaping eviction rules, tenant protections and landlord obligations across the country.

The legislation, described as the largest overhaul of the private rented sector in a generation, is designed to provide renters with greater security by banning so-called “no fault evictions,” limiting rent increases, and restricting landlords to specific legal grounds for regaining possession of their properties. While tenant advocacy groups have welcomed the reforms, landlord associations warn that the changes will increase dependence on an already congested court system and could deepen delays in repossession cases.

For Rongmala, a 57-year-old south London property owner, the issue is already acute. She became what she describes as an “accidental” landlord after health problems and disabilities meant she could no longer live alone. She moved in with her children and rented out her maisonette to help support herself financially.Last year, her tenant stopped paying rent.

After several months without payments, Rongmala served an eviction notice and began legal proceedings. Despite eventually securing a possession order from a judge, her tenant remains in the property, with rent arrears now reaching around £15,000.Under current rules, only court-appointed bailiffs can enforce the removal of a tenant after a possession order has been granted.

Rongmala’s family says they were told the wait for bailiff enforcement could take up to 11 months.The financial burden has continued to grow. In addition to the unpaid rent, she says she has had to cover £2,500 in boiler repairs, service charges for the estate, and mortgage payments on the property.

The loss of rental income has also affected her mental health.“My children are helping me for everything, but I don’t want that,” she said, describing the financial strain as a source of depression.Her son, Marouf, said the family had found the court process difficult to navigate and described the prolonged delay as emotionally and financially exhausting.

He said watching his mother struggle had been “heartbreaking,” adding that she felt powerless while waiting for enforcement.Landlord groups argue that cases like Rongmala’s could become more common under the new legal framework because the abolition of Section 21 notices will force more landlords to rely on formal court processes.Currently, landlords in England can use a Section 21 notice to evict tenants without giving a reason, provided they give at least eight weeks’ notice.

Under the new legislation, landlords will only be able to seek possession under specific legal grounds, including persistent rent arrears, anti-social behaviour, or if they intend to move back into the property themselves.Tenant organisations say the change is long overdue.Clara Collingwood, interim director of The Renters Reform Coalition, said the end of Section 21 evictions would make a “huge difference” to renters who have long faced insecurity and sudden displacement.

Renters interviewed described repeated moves, rising housing costs and uncertainty over long-term housing stability. Rosie, a young professional attending a housing protest in London, said she and her friends had moved “dozens of times,” while some were spending as much as 70% of their salaries on rent.

Fran Brown, 58, said she had moved properties five times since 2017 and was now facing another rent increase. She said she felt she was “at the mercy of the landlord changing their mind,” reflecting concerns among renters about short-notice changes in tenancy arrangements.

Another renter, James, said he received what he described as a “terrifying” eviction notice at the end of February and was struggling to find a new home for himself, his wife and two children after spending 10 years in the same property.“It’s really tough to face the reality of needing to pack up our entire lives,” he said.

The Ministry of Justice says private landlords currently wait a median of 26 weeks between filing a possession claim and regaining control of a property. A decade ago, that figure was approximately 16 weeks, highlighting how court delays have lengthened even before the latest reforms take effect.

Landlord representatives say the government has not done enough to prepare the court system for the additional demand expected once Section 21 is removed.The National Residential Landlords’ Association has warned that longer delays could discourage investment in the private rented sector, particularly for smaller landlords who rely on rental income to meet mortgage and maintenance costs.

Ben Beadle and other sector representatives have argued that landlords already face mounting pressures from tax changes, higher borrowing costs and stricter regulatory obligations. Some believe the new framework could push more owners to sell.Taylor, cited in the report, said that changes to landlord taxation combined with “ever-increasing regulation” were making continued investment less attractive and that more landlords may decide the returns are no longer worthwhile.

Greg Tsuman, director at Martyn Gerrard estate agents in London, said landlords had been leaving the market for years, but the pace had accelerated over the past 12 months.Legal service provider Landlord Action and tenants’ union Acorn have both reported a rise in Section 21 notices ahead of the reforms. According to Acorn, Section 21 cases accounted for 22% of its tenant casework in 2024, rising to 31% so far in 2026.

The increase reflects concerns that some landlords may be seeking possession before the legal changes remove the option entirely.Chris Norris of the National Residential Landlords’ Association said he did not expect an “exodus” of landlords from the market but believed some property owners could become more selective about prospective tenants.

Although the Renters’ Rights Act makes it unlawful to discriminate against tenants with children or those receiving benefits, landlords will still retain discretion over final tenant selection, raising concerns among housing advocates that informal discrimination could persist.Not all landlords oppose the reforms.

Rick Gannon, a landlord with 70 properties valued at more than £10 million, said he believed the legislation would improve standards and remove poor practices from the sector.“I think it’s the biggest change we’ve seen in this industry for many, many years and I think most of it is for the better,” he said, adding that the reforms could help “weed out bad landlords.”Rongmala and her son say they support stronger protections for responsible tenants and do not want renters to struggle.

Their concern, they say, is whether the system can deliver fairness for both sides when legal remedies take months to enforce and financial losses continue to mount.