Landlords eye portfolio cuts amidst Renters’ Rights Bill impact

The third survey this week is highlighting that landlords are planning to sell properties this year with the latest one revealing that one in five landlords in England are looking to do so.

The findings come from Octane Capital which says that the landlords are looking to sell because of the forthcoming Renters’ Rights Bill.

Despite this, the firm says, most investors remain committed to buy to let, with 90% having maintained stable portfolio sizes over the past year.

Only 7% of landlords have reduced their holdings.

It also says that the narrative of a landlord exodus has been ‘exaggerated’.

‘More could choose to exit during 2025’

Octane’s chief executive, Jonathan Samuels, said: “It’s fair to say that the landlord exodus that has been so widely talked about in recent years has been largely over exaggerated and the vast majority of buy to let investors still view the private rental market as a worthwhile endeavour.

“However, there’s no doubt that the government’s consistent campaign to deter landlords from the sector by way of legislative changes has had an impact and, in a market that is already drastically undersupplied, we simply can’t afford to drive away investors.”

He added: “Unfortunately, it looks as though more could choose to exit during 2025 and the key reason for this decision is the Renters’ Rights Bill.

“Whilst any improvements to tenant welfare are, of course, positive, the concern is that landlords have been largely ignored with respect to the intended changes.

“In doing so, the government is likely to exacerbate the current rental crisis as without the vital supply of rental properties reaching the market, tenants will be worse off than they may be now.”

Landlords plan to downsize

The survey shows that 21% of landlords plan to downsize this year, while 75% intend to remain in the PRS and 4% may expand.

The Renters’ Rights Bill is the primary driver for those considering selling properties, followed by the installation of a Labour government and the landlord approaching retirement.

Landlords cite the removal of Section 21 ‘no-fault’ evictions as the biggest challenge presented by the Bill.

Restrictions on not accepting tenants receiving benefits or with children, alongside the end of short-hold tenancies, also raise landlord concerns.

If you would like to discuss quickly selling your rental property with experts, contact Landlord Sales Agency:

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