As the Government’s Renters’ Rights Bill edges closer to becoming law, a newly commissioned report from HMRC has revealed a wave of discontent among landlords—many of whom are now preparing to sell off their rental properties in large numbers.
The findings, compiled by Ipsos on behalf of HMRC, sharply contrast with repeated assurances from senior ministers that the rental sector would remain stable. Housing Secretary Angela Rayner has stated that the reforms would only impact “a small number of unscrupulous landlords,” while Housing Minister Matthew Pennycook maintains the Government “sincerely believes” that tighter regulation will not result in a reduced housing supply.
Mass Exodus Looming
However, the report paints a starkly different picture. Nearly a quarter of landlords across the UK plan to reduce the size of their property portfolios within the next year. That figure jumps to one in three over the next five years, with more than half of landlords considering exiting the market altogether. A majority—56%—cite the tightening of property regulations as a key driver behind their decision.
Beyond Regulation: Financial Pressures Mount
The report also highlights other pressing concerns. Over half of landlords surveyed own only one rental property, and 52% report earning less than £10,000 annually in profit. With such slim margins, changes to tax policy can have a disproportionate effect. Nearly 60% pointed to recent tax reforms as a primary motivation for selling up.
Administrative burdens were another recurring complaint. Half of respondents said the complexity of managing a rental property had become overwhelming. Many now rely on professional tax advice, citing time-consuming processes and frequent changes in legislation. Among those handling their own tax affairs, 40% identified “complexity and lack of clarity” as their biggest challenge.
Sector at a Crossroads
As the Renters’ Rights Bill nears implementation, the findings suggest growing unease in the rental sector—raising questions about the long-term impact of the legislation on housing availability. While ministers continue to downplay the risks, the data reveals a sector facing significant uncertainty, with many landlords contemplating an early exit.