Greater than a 3rd of landlords (39%) are contemplating leaving the rental market utterly throughout the subsequent yr, based on the 2025 London Report from landlord insurance coverage supplier Merely Enterprise.
The Renters’ Rights Invoice, which is ready to obtain Royal Assent this Autumn, is the first concern for 1 / 4 (26%). But, regardless of the challenges, 39% nonetheless think about property letting worthwhile, whereas 26% stay unsure.
From early 2026 the Renters’ Rights Invoice ought to restrict hire will increase and is designed to enhance rental property requirements.
Julie Fisher, UK chief government of Merely Enterprise, mentioned: “There’s a way of trepidation amongst the nation’s landlords. The long-awaited Renters’ Rights Invoice (RRB) is ready to drastically change the rental market within the subsequent 12 months. However many landlords (76%) concern the brand new rules gained’t enhance requirements available in the market the best way the federal government hopes.
“Insuring greater than 300,000 landlords permits us to realize first-hand perception into the integral function they play within the housing market. What’s clear is their need to proceed offering high quality housing whereas sustaining viable companies.
“With the largest adjustments to tenancy regulation in a era virtually right here, alongside a number of different regulation adjustments, landlords are asking for readability. It’s important they’re given the time and steering wanted to proceed to offer much-needed housing for nearly 5 million households nationwide.”
The Part 21 ban is landlords’ prime concern, worrying 38%, with 56% involved about lengthier, costlier eviction processes.
But, the analysis reveals that landlords sometimes keep steady tenancies. 71% have by no means used a Part 21 discover to evict a tenant, whereas 97% have housed the identical tenants for greater than a yr and near a 3rd (31%) have supplied houses for a similar tenants for over 5 years.
On the Part 21 discover, a landlord based mostly within the North West mentioned: “I’ve by no means truly used a piece 21 however I’ve used the specter of it when a tenant significantly breached the Tenancy Settlement.
“Having it obtainable ensures higher compliance from tenants and fewer danger for landlords. I’ve by no means needed to name the Police to my own residence, however the truth that I can do it makes us all safer and supplies re-assurance to these doing no mistaken.”
Relating to hire enhance limits, solely 8% of landlords think about new rules a key concern, suggesting most are usually not affected by the once-a-year cap and are unlikely to go elevated prices onto tenants.
Greater than half (54%) haven’t elevated hire for present tenants prior to now 12 months, and 67% don’t plan to alter their hire enhance strategy after the invoice takes impact.
The brand new invoice may also see landlords dealing with new power effectivity necessities, geared toward decreasing tenant power payments by a mean of £240 per yr.
From 2030, all rental properties can be required to have an EPC ranking of C, a rise of two scores from the present normal requirement of E. The sector may need to take a position as much as an estimated £9 billion, with 13% of landlords anticipating to spend over £10,000.
Outdoors of the Renters Rights Invoice, landlords are additionally dealing with adjustments to tax processes as the federal government’s Making Tax Digital initiative is ready to switch annual self-assessments with quarterly returns from April 2026 for people with a mixed annual revenue of £50,000.
Some 68% of landlords say they really feel unprepared for the brand new course of, with solely 5% anticipating improved effectivity. Many anticipate larger prices as a consequence of elevated accountancy charges (41%), elevated time necessities (45%), and higher complexity (35%).
