More than a third of landlords (39%) are considering leaving the rental market completely within the next year as new regulations designed to strengthen renter protections create uncertainty for buy-to-let investors serving almost five million UK households, new research suggests.

The 2025 Landlord Report from landlord insurance provider Simply Business, surveying more than 1,000 landlords, reveals the Renters’ Rights Bill is a primary concern for a quarter (26%). Yet, despite the challenges, 39% still consider property letting worthwhile, while 26% remain uncertain.

The Renters Rights Bill, which is set to receive Royal Assent this Autumn, will introduce significant rental law changes when it takes effect in early 2026, including measures to limit rent increases and improve rental property standards.

Landlords now face multiple regulatory changes as the government works to improve conditions for renters. The Section 21 ban is their top concern, worrying 38% of landlords, with 56% concerned about lengthier, costlier eviction processes.

Yet, the research shows that landlords typically maintain stable tenancies. 71% have never used a Section 21 notice to evict a tenant, while 97% have housed the same tenants for more than a year and close to a third (31%) have provided homes for the same tenants for over five years.

When it comes to rent increase limits, only 8% of landlords consider new regulations a key concern, suggesting most are not affected by the once-a-year cap and are unlikely to pass increased costs onto tenants.

More than half (54%) haven’t increased rent for existing tenants in the past 12 months, and 67% don’t plan to change their rent increase approach after the bill takes effect.

The new bill will also see landlords facing new energy efficiency requirements, aimed at reducing tenant energy bills by an average of £240 per year.

From 2030, all rental properties will be required to have an EPC rating of C, an increase of two ratings from the current standard requirement of E. The sector could need to invest up to an estimated £9 billion, with 13% of landlords expecting to spend over £10,000.

Adding complexity, Simply Business revealed over a fifth (21%) of landlords are uncertain about the EPC changes required and how to fulfil them, highlighting the need for greater clarity and guidance.

Outside of the Renters Rights Bill, landlords are also facing changes to tax processes as the government’s Making Tax Digital initiative is set to replace annual self-assessments with quarterly returns from April 2026 for individuals with a combined annual income of £50,000. 68% of landlords say they feel unprepared for the new process, with only 5% expecting improved efficiency.

Many anticipate higher costs due to increased accountancy fees (41%), increased time requirements (45%), and greater complexity (35%).

Julie Fisher, UK CEO of Simply Business, said: “There’s a sense of trepidation amongst the nation’s landlords. The long-awaited Renters’ Rights Bill (RRB) is set to drastically change the rental market in the next 12 months. But many landlords (76%) fear the new regulations won’t increase standards
in the market the way the government hopes.

“Insuring more than 300,000 landlords allows us to gain first-hand insight into the integral role they play in the housing market. What’s clear is their desire to continue providing quality housing while maintaining viable businesses.

“With the biggest changes to tenancy law in a generation almost here, alongside several other regulation changes, landlords are asking for clarity. It’s vital they’re given the time and guidance needed to continue to provide much-needed housing for almost five million households nationwide.”