Few would dispute that the passing of the Renters’ Rights Act was long overdue, with action needed to remove rogue operators, who have dominated headlines over the years, from the market.
Responsible landlords – those that invest in property maintenance, comply with safety regulations, and are respectful of their tenants – understand this. However, policymakers need to ensure that they aren’t the ones that risk being pushed out completely.
Agents on the forefront of the market now have the opportunity to provide landlords with invaluable strategic advice, to ensure their next move is well informed.
Changing landlord behaviour
Over the past year, landlord confidence has significantly weakened. Between April and June 2025, the National Residential Landlord Association (NRLA) reported that 6,700 households qualified for council support because their landlord chose to repossess and sell the property. This figure has risen by approximately 19 per cent since late 2024, according to the analysis. It reflects a clear pattern: more landlords are choosing to exit the sector, and fewer are entering to replace them.
This is happening at a time when demand for good quality housing is reaching record levels. Government figures reveal that there were 132,410 households living in temporary accommodation in June 2025 – the highest number on record. 63.6% of these households include dependent children (+7.5% versus June 2024), and the Local Government Association has warned that temporary accommodation is becoming one of their largest and fastest-growing financial pressures.
Landlords are stepping back due to a combination of factors. Although the Autumn Budget avoided introducing National Insurance on rental income, it raised the tax on dividends, savings and rental income by 2%. The NRLA described the chancellor’s announcement as “deeply regressive”, with the additional costs likely to push up rents across the country and disproportionately affect low-income households.
Additionally, with Local Housing Allowance (LHA) frozen for the second year in a row in 2026/7, many tenants receivingfinancial support could be pushed closer to homelessness as the cost-of-living crisis continues to grip families across England.
Regulatory changes – primarily the Renters’ Rights Act – are creating additional administrative and financial pressures too. Whilst it is unlikely to be enforced until at least 2035, the eventual extension of the Decent Homes Standard to the private sector signals a future shift in the expected quality of properties. So, it’s unsurprising that many of the smaller landlords, who make up a large proportion of the market yet have limited resources compared to the larger operators, feel they no longer have the financial resilience or certainty to continue letting properties.
For estate and letting agents, these trends have immediate implications. Fewer landlords mean fewer instructions, reduced managed stock and more competitive local markets. Many landlords considering selling up are doing so out ofconcern rather than preference. They are seeking reassurance, more predictable income and greater support as they navigate regulatory and financial changes.
Supporting landlords through transition
This is where agents can play a valuable advisory role. Before immediately accepting instructions to sell, there’s value in exploring whether alternative management models might better serve the landlord’s future interests. Doing so not only strengthens long-term relationships, but can increase the agent’s reputation as a trusted, well-informed partner.
Some landlords assume their only options are a traditional Assured Shorthold Tenancy or selling up, but the emergence of alternative management models are presenting new opportunities.
One notable trend is the increasing number of local authorities entering partnerships with specialist property managers to address temporary accommodation shortages. These arrangements typically involve fixed-term leases with predictable income streams that offer landlords greater property protection than a standard AST. Meanwhile, councils are able to provide more stable, secure and good qualityaccommodation for the thousands of families currently living in unsuitable accommodation across the UK.
Without exploring and understanding viable alternatives, many landlords will decide that selling is their only option. Now is the time for agents to demonstrate credibility and show their support before it’s too late.
Preparing for what’s next
Landlords are facing a range of challenges today, including rising costs, tax changes, tighter regulation and increased administrative demands.
With the market at a crossroads, agents who position themselves as strategic advisors will be able to retain landlord confidence through this period of change. This means engaging in supportive and informed conversations to explore all viable options, before they exit the market prematurely.
By offering informed and balanced guidance, agents can help landlords to continue operating with confidence, maintain essential rental supply and support a healthier, more resilient housing system for the future.
John Angus is managing director of Switch Management
What are the NRLA doing to represent the landlords who will be, once again, squeezed for even more taxes?
Are they on the side of landlords or not?
It’s not enough to just call this ‘deeply regressive’. Action is required. The government need to be strongly challenged on this.
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You cannot challenge a govt with a massive majority until, the next election
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I don’t agree. There have been countless challenges to the government so far, many of which have resulted in a u-turn.
Apathy = acceptance.
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Fair point actually but who is going to issue the challenge
Other challenges were media driven I do not see the media standing up for LL
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I’d argue that Ben Beadle has been one of the most vocal and prominent voices from all corners of the PRS and associated industries, campaigning to educate government on the nuances of the PRS and the unintended consequences of many elements of the RRA. Despite all the drama and doom-mongering throughout the Bills’ lengthy (and transferred) process, the PRS will largely operate as it has done with quality landlords and letting agents benefitting from a more professional lettings landscape. But the days of running properties as a ‘side hustle’ are numbered, hands-on Landlords will either need to undertake substantial training and put processes and software in place, or will need to turn to the expertise of a quality letting agent & property manager (and by the way- it’s never the cheapest one).
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I and many others would dispute the first paragraph. The RRA is using a sledgehammer to crack a nut.
Never heard of John Angus nor Switch Management, but he is denigrating the vast majority of landlords who provide good quality housing.
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Agreed.
Most “everyday” landlords are decent people. That’s most, not all. The new taxes and laws seem to target these everyday landlords who will just pick up their ball and leave.
The dodgy ones will continue to be dodgy. The cash rent only landlords with grotty properties will not be deterred and are unlikely to get caught.
Every now and again PIE reports on a landlord AND an agent losing a court case where an HMO was unlicensed, and etcetera.
We never hear of just a landlord only. This might be reporting bias, but I would perhaps suggest that the real dodgy landlords rarely come to light because they are so far below the radar.
These landlords are the ones who should be targeted.
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Rogue operators are the exception, not the rule- but that’s not how the media portray it. The frameowrk coming in over the next 3 years, will drive out the (small) rogue element of landlords and letting agents- if the enforcement is funded well and targetted correctly. Slightly bizarre for a temporary accommodation provider to be writing a long piece about the PRS, though, as its not their wheelhouse.
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There is little doubt this Government and the previous are determined to see the end of private landlords egged on by Shelter and Generation Rent. Buy to let landlords were blamed for the shortage of first time buyer homes because they purchased so many of them. According to my local MP who first brought this to parliament, if all landlords sold up everyone would be able to buy a home. Of course this was utter rubbish but Governments have continued to bash landlords ever since. The 2% tax increase will not be the end of this campaign. Absolutely nothing in the new bill for landlords but, of course, it is all about renters’ rights. Landlords it would appear have no rights, not even the right to carry out periodic inspections if a tenant refuses. I believe Reeves dropped the NI for landlords and introduced the tax increase when she realised so many private landlords would not have to pay because they were pensioners and exempt.
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Does this government actually study history before making its decisions?
In Ireland in the early 19th century, tenants were struggling to pay their tithes for various reasons, such as a poor harvest or illness leading to destitution. They naturally revolted and would refuse to pay when the collectors turned up, whole villages coming together to defend their homes. The government of the time enacted The Tithe Rentcharge Act in 1838 which reduced the tithe by about 25% and transferred payment responsibility to the landlords. The landlords put the rents up accordingly.
Pay attention Reeves, this is important.
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