Landlords promised to sell up after the Renters Rights Act — instead they did this

As landlords made every effort to thwart the introduction of the Renters Rights Act, we were told that trying to make things better would do the opposite, and instead lead to a mass exodus of the industry’s ‘good guys’.

The implication was that increased regulation would prompt them to cut their losses and sell up, making the situation even more unbearable for tenants than before.

But despite these protestations, the repeatedly-delayed bill — which capped rent increases, abolished Section 21 no-fault evictions and banned accepting or encouraging ‘bids’ to secure properties — eventually came into law last year, then into force last month.

And while landlords’ profit margins may be down (at least in the short term), their threats of exiting the sector seem to have been somewhat overblown.

According to analysis from Hampton’s, although 9.2% of homes listed for sale last month had previously been advertised for rent within the last five years, this is down from the 11.3% recorded last year. Not only this, June marked the first time since 2019 that landlord purchases exceeded landlord sales.

Recent research from Just Landlords also revealed nearly 14,000 new landlord businesses were registered in the first five months of 2026 alone, with the 2020s already accounting for more Companies House registrations than the entire period from 2000 to 2019 combined.

In fact, 84% who took part Handelsbanken’s latest Property Investor Survey said they plan to increase their portfolio in the next 12 months, up from 54% in 2025.

Although around one in five claimed they had sold at least one property, 59% said they were instead tightening tenant selection criteria in response to the new legislation, with 44% considering raising rents earlier than planned.

This is backed up by data from London Renters Union, which shows rents have hit record highs, skyrocketing 39% since 2020 (right after the last major regulation, The Tenant Fees Act, banned the various mandatory ‘admin’ and ‘check-out’ fees landlords were previously allowed to charge).

A storm in a teacup

Commentators have suggested that these predictions were nothing more than a storm in a teacup; one purposefully started by property-owning lobbyists.

A spokesperson for the London Renters Union tells Metro: ‘The threat of a mass exodus is a favourite scare tactic of the landlord lobby in its bid to ward government off from improving renters’ rights.’

And there are some on the other side of the debate who agree, including Benham and Reeves director and landlord Marc von Grundherr, who called it a ‘myth’.

‘Yes, legislative changes have reduced profit margins in recent years, but this simply hasn’t been the deterrent the Government hoped it would,’ he tells Metro. 

‘While many landlords will always be “thinking of selling”, the majority aren’t because they’ve continued to benefit from upward rental growth and the capital appreciation of their initial investment.’

Marc adds that despite current issues, ‘long-term, which is the view landlords must take, they have seen a very strong return.’

‘What’s more, those who invested a decade ago are now benefiting from today’s rental yields despite investing significantly less to begin with,’ he continues.

‘I don’t believe there is any motivation behind the narrative of the landlord exodus beyond a small proportion making a good news story.’

Feeling the pinch

According to some industry experts, however, there’s more to it than that.

Jonathan Samuels, CEO of buy-to-let finance firm Octane Capital, argues that some landlords (specifically those who let out one or a few properties) are leaving the sector, but bigger, commercial owners are taking up their share.

For over 76% of those thinking of selling their properties, increased legislation and diminishing returns were said to be the key driving factors. Around half of the market is made up of those with one or two properties in their buy-to-let portfolio, and it’s this group feeling the pinch most.

‘The economics don’t really work that well for landlords if it’s just what I would call a plain vanilla transaction; buying an apartment that’s fit and ready for someone to go in and rent it out and borrowing 70% loan to value,’ Jonathan tells Metro.

‘If that’s the strategy, right now it’s not going to work, because the costs involved all add up — and they’re quite considerable.’

Faceless corporations

What does work, though, is people maximising their margins by ‘adding value’ to the properties they let.

Jonathan says: ‘This is where people can make money still, and we’re seeing a lot of people buying a house, getting planning permission and splitting it into two or three flats, or taking a property and turning it into a house of multiple occupation (HM)O).

‘The yields on those sorts of properties are a lot higher. Because you’re just getting more people inside the property.’

The result of this could well be positive, as Jonathan explains: ‘Generally speaking, the landlords who have many properties and treat it as a business, they’re just more up to speed on the regulations. They get that you’ve got to invest in your properties in order to get the best rent, so they’re incentivised to keep up with the standard of properties.’

Alternatively, it could take the personal element out of housing, compounding the already difficult situation whereby tenants are at the mercy of faceless corporations and forcing us to live on top of each other in tiny altered dwellings.

It was also surmised that those looking to get on the property ladder would benefit from the landlords who do sell up, but house prices have remained largely the same. Rather, tenants appear to be bearing the brunt of uncertainty, being further priced out of homeownership as they put more of their wage towards increasing rents.

Jonathan comments: ‘Certain landlords have managed to hold on and not sell because they have passed on a lot of costs, and renters have been meeting those.’

Do you have a story you’d like to share? Get in touch by emailing [email protected]

MORE: My honest review of the hotel room that costs more than I earn in a month

MORE: I cleared my £30,000 debt by living in a London hostel for a year

MORE: Water returns to Gatwick Airport after passengers left with ‘no flushing toilets or drinking fountains’