The Renters’ Rights Act (RRA), which came into force on 1 May 2026, has been widely acknowledged as a necessity to tackle rogue landlords and improve standards for tenants. However, the changes have triggered a wave of responsible landlords exiting the market - raising real concern for the future of the housing sector.
According to figures from LandlordBuyer, an estimated 93,000 buy-to-let landlords sold up last year. This trend is only expected to grow, with Property118’s Q1 2026 Landlord Sentiment Survey finding that 41% of landlords said they were unlikely to continue letting following the Act’s implementation – rising to more than half of single-property landlords.
With government figures showing around 45% of UK landlords own a single rental property, and a further 37% own between two and four assets - representing more than half of tenancies nationwide1 – small landlords are critical for the private rented sector and for availability of housing.
However, the introduction of the Act has coincided with considerable pressures elsewhere, from higher mortgage rates, to stamp duty surcharges and a relentless pace of regulatory change to stay on top of, so it is unsurprising that confidence has weakened.
A survey of 600 landlords commissioned by Aldermore earlier this year found that around 70% of respondents expect the reforms to negatively affect the sector, with smaller portfolio landlords among those most likely to consider exiting the market by the end of 2026.2 Despite this, the same research found that 84% of landlords still report their business as profitable – which offers a reminder that the market fundamentals remain strong for those who are able to adapt.
The impact of the Renters’ Rights Act
The reforms introduced under the Act represent one of the most significant shifts in the private rented sector in decades. For many landlords – particularly those managing one or two properties independently – the concern is less about the principles of the changes, and more about how to navigate them in practice.
The abolition of Section 21 ‘no fault’ evictions mean landlords must now rely on specific Section 8 grounds for possession. In practice, this means longer court timelines, higher legal fees and greater evidential requirements when attempting to regain possession of a property.
Data from the Ministry of Justice reflects the scale of concern around this change, with more than 28,000 accelerated possession claims made in 2025, as well as a more widely reported surge in notices issued immediately before the reforms came into effect.
From May 1, existing assured shorthold tenancies (ASTs) transitioned to assured periodic tenancies (APTs), creating greater uncertainty around occupancy and planning for smaller landlords. With an increased risk of tenant turnover, it has become more difficult to anticipate voids and maintain long-term income certainty.
Alongside the key reforms, landlords must also adapt to tighter rules around rent increases, pet requests, and harsher penalties for non-compliance. Further regulatory changes are also in the pipeline, including the expected extension of Awaab’s Law into the private sector.
While larger operators are more likely to have dedicated compliance teams that are equipped for these types of change, those with small portfolios often don’t benefit from the same level of resource and will require additional support to manage the increased administrative workload involved.
As a result, many responsible landlords have been questioning whether remaining in the sector is a viable long-term option.
A concern for tenants
The Renters’ Rights Act has triggered a shift in market activity, with institutional operators buying up stock from independent landlords to expand their portfolios – resulting in a wider transfer of ownership within the sector.
There is growing concern that if confidence continues to wane, the reduction in rental supply could increase competition for homes and increase rents.
This is likely to disproportionately affect lower-income households and families, who are already struggling to access suitable accommodation. Government figures show that more than 81,000 families with children are currently living in temporary accommodation in England, representing a year-on-year increase of 13.7%.3 If smaller players continue to leave the market, the availability of rental properties could become increasingly limited for those most in need, and continue to accelerate the housing crisis.
At the same time, landlords may adopt stricter affordability and referencing requirements in response to the regulatory changes, making it even more difficult for lower-income households, self-employed tenants and international renters to access the private rented sector.
Unlike larger operators, small landlords play a key role in maintaining the diversity of rental supply too. They are more likely to own family homes, terraced properties and homes in lower-demand areas, while the lack of management and service fees allows for more affordable
rental rates, and a more personalised approach. When these properties are absorbed into larger portfolios, choice is reduced, rents are increased and accessibility becomes limited.
Supporting small landlords is therefore essential not only for protecting housing supply, but also to ensure vulnerable households have access to suitable and stable accommodation they need.
Partnership solutions
The challenges landlords must now navigate are significant, and those best placed to navigate the legislation won’t be doing it alone. With the support of specialist property management specialists, who can provide operational, tenant management and compliance expertise, independent landlords can continue to benefit from stable rental income, without an additional administrative and financial burden.
At Switch Housing, we work alongside local authorities and landlords to provide vulnerable families across the UK with stable accommodation through long-term tenancy agreements.
Our model operates on a license-to-occupy basis, rather than traditional assured tenancies, which is what the Act specifically targets. This means that the properties managed within our Housing programme fall outside the scope of the new reforms entirely.
Landlords who partner with us benefit from guaranteed rental income regardless of occupancy, helping to reduce the financial uncertainty associated with void periods and arrears. Management costs are covered by the local authority, allowing landlords to access support without any upfront expense.
Our expert team also assists with tenant communication, compliance monitoring, and ongoing property management, helping landlords adjust to the new regulatory requirements.
Additional services, including regular property inspections, tenant induction programmes, and malicious damage guarantees further reduce administrative pressures for small landlords, while promoting positive tenant outcomes.
In an evolving sector landscape, these partnership models can provide landlords with greater financial security and day-to-day support, while also helping vulnerable households access stable, long-term housing.
The future of the private rented sector
The introduction of the Renters’ Rights Act marks a significant shift for the private rented sector, creating new protections for tenants and greater responsibilities for landlords. As the sector responds, maintaining confidence among smaller landlords will remain critical to the long-term stability of the rental market.
Specialist property management companies can play an important role in helping smaller landlords navigate the transition, remain compliant, and continue operating within the sector.
Ultimately, the Act was intended to deter irresponsible operators, but that shouldn’t come at the cost of supporting good ones. A diverse landlord pool is better for the market, ensuring stability, affordability and accessibility of housing for those who need it most.
