As an RICS Surveyor working across the residential and commercial sector, I fully support the spirit of the Renters’ Rights Act (RRA) to improve standards and security for residential tenants. However, the reality of recent legislation—including the RRA and previous tax changes—is creating a profound and damaging shift in the market.

My most frequent conversations right now are with small and ‘accidental’ landlords who are, quite simply, looking for the fastest route to exit the rental sector. They tell me that a combination of factors—the phase-out of mortgage interest relief (Section 24), higher mortgage rates, and now the increased complexity and reduced certainty from the RRA—means their portfolios are no longer financially viable. They are being forced to dispose of their properties.

The Economic Impact: Reduced Supply, Rising Rents

This exit of smaller landlords is not happening in a vacuum; it has immediate and negative consequences for the wider housing market and for the tenants the Act is designed to protect. The data confirms this alarming trend:

• Plummeting Supply: The RICS Residential Survey has repeatedly shown landlord instructions continuing to fall, with recent surveys reporting a negative net balance for new instructions, highlighting that fewer properties are entering or remaining in the Private Rented Sector (PRS).
• Mass Exodus: Industry analysis suggests that roughly 93,000 landlords are expected to exit the rental market in 2025 alone, accelerating the stock crisis.
• Rent Hikes: As supply continues to fall while tenant demand remains high, the inevitable consequence is spiralling rent inflation. RICS has consistently forecast that this imbalance will push rental prices to climb further, worsening the current affordability crisis.

The Social Housing Pressure Cooker

When a private landlord sells a property, it’s a net loss to the rental pool. Data shows that only a small fraction (under 3%) of these sold properties are subsequently re-let by another investor, meaning thousands of homes are permanently exiting the PRS stock.

This reduction in available private rental stock places enormous new pressure on social housing services. Households that might have otherwise found accommodation in the PRS are increasingly turning to local authorities, compounding the existing backlog and raising the spectre of increased homelessness risk.

We need a balanced approach. The reforms must be backed by improved court processes to give responsible landlords the confidence to remain. Without this balance, government policy risks accelerating the departure of the very people who provide the bulk of the UK’s rental homes, ultimately leading to a more expensive and less stable market for everyone.

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