Housing Minister Matthew Pennycook has flatly dismissed warnings that the government’s Renters’ Rights Bill could destabilise the UK’s already strained rental market — but small landlords across the country are calling foul, accusing the government of wilful ignorance and regulatory bias.
In a written response to Shadow Housing Secretary Kevin Hollinrake, Pennycook insisted that the sweeping reforms — which include the abolition of Section 21 “no-fault” evictions — would not rattle the sector. “We do not expect the bill to have a destabilising effect on the rental market or the Build to Rent sector,” he wrote, adding that ministers would “continue to work with good landlords” to support a smooth rollout.
But that reassurance has landed flat among the UK’s 2.3 million private landlords, many of whom say they are already heading for the exit. At the heart of the backlash is a widening divide in how different types of landlords are treated — with smaller operators burdened by new regulation, while deep-pocketed Build to Rent (BTR) giants escape largely unscathed.
David vs Goliath: Uneven Rules, Unequal Market
One of the most contentious aspects of the Bill is the government’s decision to exempt BTR schemes and purpose-built student housing from the proposed extension of the Decent Homes Standard — a move critics say effectively hands big developers a regulatory free pass while strangling smaller landlords with red tape.
“They say they want fairness, but we’re being loaded with regulation while corporates carry on untouched — charging sky-high rents to boot,” said one Yorkshire-based landlord who’s preparing to offload half of his portfolio.
Indeed, recent listings show BTR firms charging eye-watering prices — with one-bedroom flats in London advertised at £2,600 a month, and three-bed homes approaching £4,600. By contrast, independent landlords, often with just a handful of properties, typically charge a fraction of that.
Despite Pennycook’s claim that the bill was being shaped with input from landlords and investors, many in the sector say their concerns have been sidelined. The government’s focus, they argue, is squarely on institutional players — at the expense of diversity, flexibility, and supply in the market.
Confidence Crumbles, Supply Tightens
The impact is already being felt. Small-scale landlords, faced with tightening profit margins, heavier compliance burdens, and what many describe as political hostility, are leaving the sector in increasing numbers. Their departure is shrinking the available rental stock and pushing rents ever higher — especially in high-demand areas like London, Manchester, and Bristol.
Sarah Dines, a landlord in East Sussex with four properties, says she’s had enough. “I’ve had great tenants, low turnover, and have always kept my properties in excellent condition. But I feel like I’m being punished for doing things right,” she said. “If they want a thriving rental market, they need to stop painting us all with the same brush.”
Pennycook’s answer to Hollinrake — which focused solely on the impact of the Bill on BTR — has further inflamed tensions, with landlord groups saying it underscores the government’s bias toward large-scale providers. “We are seeing a deliberate hollowing out of the small landlord sector,” said a spokesperson from the National Residential Landlords Association (NRLA). “It’s death by a thousand regulations.”
Empty Promises, Growing Crisis
While ministers insist the Bill won’t shake the foundations of the rental market, the reality tells a different story: landlord confidence is in freefall, rental supply is tightening, and costs are spiralling. In what many now see as a two-tier market, smaller landlords are being regulated out of existence — while institutional giants consolidate their grip.
If the government is serious about building a fair and functional rental system, critics say, it must stop ignoring the warning signs. Because as things stand, the Renters’ Rights Bill isn’t just reforming the market — it’s reshaping it for the worse.