"The long-awaited Renters’ Rights Bill is set to drastically change the rental market in the next 12 months. But many landlords fear the new regulations won’t increase standards in the market the way the government hopes"
- Julie Fisher - Simply Business UK
A new report from Simply Business shows more than a third of landlords are considering leaving the rental market as new regulations take shape.
The 2025 Landlord Report, based on responses from more than 1,000 landlords, found that 39% may exit the market within the next year. The findings come as the Renters’ Rights Bill, due to receive Royal Assent this autumn, prepares to introduce new limits on rent increases and higher property standards from early 2026.
Despite these pressures, 39% of landlords still consider letting worthwhile, while 26% remain undecided.
Section 21 and tenancy stability
The removal of Section 21 is a major source of concern, with 38% of landlords worried about its impact. More than half (56%) are also concerned about longer and more expensive eviction processes.
The research shows, however, that most landlords maintain long-term relationships with tenants. In total, 71% have never used a Section 21 notice, while 97% have housed the same tenants for more than a year. Almost a third (31%) have provided homes for the same tenants for more than five years.
“I have never actually used a section 21 but I have used the threat of it when a tenant seriously breached the tenancy agreement,” explained a landlord based in the North West. “Having it available ensures better compliance from tenants and less risk for landlords. I have never had to call the Police to my own home, but the fact that I can do it makes us all safer and provides re-assurance to those doing no wrong.”
Concerns around rent increases were far lower, with only 8% of landlords highlighting the measure as a major issue. More than half (54%) have not increased rent for existing tenants in the past year, while 67% do not plan to change their approach once the bill takes effect.
Energy efficiency requirements
The bill will also introduce new energy efficiency rules. From 2030, rental homes will need an EPC rating of C, up from the current minimum of E. The changes are expected to reduce tenant energy bills by £240 a year, but the sector may need to invest up to £9 billion.
Simply Business found that 13% of landlords expect to spend more than £10,000 on upgrades. At the same time, 21% remain unsure about what changes are required and how to achieve compliance.
“I might have no option but to sell one of my properties. The EPC system lacks clarity. There is a mismatch in ratings of similar properties on my street, therefore, there appears to be an element of subjectivity to ratings,” said a landlord based in Nottingham.
Tax changes add further pressure
Beyond the Renters’ Rights Bill, landlords are preparing for changes under the government’s Making Tax Digital initiative. From April 2026, landlords with annual income above £50,000 will be required to submit quarterly tax returns.
The research found that 68% of landlords feel unprepared for this shift. Only 5% expect greater efficiency, while many foresee higher accountancy costs (41%), additional time commitments (45%), and greater complexity (35%).
“There’s a sense of trepidation amongst the nation's landlords,” said Julie Fisher, UK CEO of Simply Business. “The long-awaited Renters’ Rights Bill 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 regulatory 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.”
