Amid mounting concern over the upcoming Renters’ Rights Act, letting agents across the UK are reporting a mass exodus of landlords — a trend experts warn could intensify the already-dire rental crisis by driving prices even higher.
According to the latest June 2025 RICS UK Residential Survey, landlord instructions — a key indicator of rental property availability — have fallen sharply, with a net balance of -21%. Letting offices nationwide are sounding the alarm over dwindling supply in the private rented sector, just as tenant demand holds steady.
In Barnsley, Adam Parkinson of Countrywide Surveyors reports that several long-term landlords have recently sold up, citing unease over the new legislation. Chief among their concerns is the anticipated difficulty in removing problematic tenants under the forthcoming reforms.
Similar stories are unfolding elsewhere. In Ham, Stan Shaw of Mervyn Smith & Co says the rental market remains “inflated and competitive,” but warns that this is being driven by lack of supply, not heightened demand. “The pattern of landlords exiting the market continues, with very few new investor buyers entering,” he said.
David Boyden of Boydens in Colchester echoed those concerns, noting high numbers of landlords leaving the market at the end of tenancies. “Landlords remain cautious regarding the reforms,” he said.
A significant sticking point is the overhaul of possession grounds. William Delaney of Coopers of London argues that changes to eviction rules, coupled with the government’s failure to publish a justice impact assessment, are deepening uncertainty. “The county court system is already at breaking point,” he warned. “When the bill becomes law, a likely consequence will be a breakdown of the court system.”
While RICS data shows tenant demand remained broadly unchanged in June, with a net balance of -2%, the outlook for rents is climbing once again. A net balance of +24% of agents now expect rents to rise over the next three months — a troubling sign for tenants already stretched by high costs and limited choices.
The inevitable outcome, warn experts, is that fewer rental properties on the market will only fuel further price increases, pushing housing further out of reach for many and exacerbating the very crisis the legislation aims to solve.