Angela Rayner’s flagship Renters’ Rights Bill promises a sweeping overhaul of the private rental sector – with the headline pledge to abolish Section 21 “no-fault” evictions winning praise from tenant advocates. But as the legislation moves through Parliament, property experts and landlord groups are raising the alarm over a lesser-known provision that could leave thousands of rental homes empty.
Under the proposed legislation, landlords who attempt to sell a rental property – but fail to do so – would be barred from re-entering the lettings market for 12 months. Critics argue this would not only deprive landlords of income but also worsen the UK’s already strained rental supply.
Failed sales are not uncommon, particularly in the current climate. Rightmove’s latest data paints a bleak picture for homeowners in London and the South East, where a cooling property market is making sales more uncertain. In such cases, landlords who are unable to find a buyer could be left holding an empty property – unable to let it out, and with no income to cover mortgage costs.
The National Residential Landlords Association (NRLA) has warned that the measure could fuel a surge in empty homes. “We are concerned that the government does not recognise the risk that the number of empty homes in the private rented sector may substantially increase if this proposal passes into law,” said Meera Chindooroy, the NRLA’s deputy director of campaigns, policy and public affairs.
The association cites figures from the government’s English Housing Survey, which suggest that nearly half a million rental properties in England are currently unoccupied. With demand outstripping supply in many areas, the NRLA fears that Labour’s reforms could exacerbate what it calls an “unprecedented supply and demand crisis”.
Despite the concerns, Rayner’s office insists the reforms are essential to rebalancing a rental market that has long favoured landlords. The ban on re-listing properties after a failed sale is designed to discourage speculative ownership and ensure landlords are committed to the long-term provision of rental housing.
Rayner’s wider reform package includes a raft of changes aimed at strengthening tenant protections. These include a guaranteed 12-month security period at the start of every tenancy during which eviction for sale purposes is prohibited, the creation of a national landlord register, and the establishment of an ombudsman to handle disputes. Landlords will also be banned from discriminating against tenants on benefits or with children and from engaging in bidding wars.
Many of these ideas have previously appeared in Conservative policy discussions. Former chancellor George Osborne took steps to professionalise the sector by capping mortgage interest tax relief for landlords. His successor Rachel Reeves has continued that trend with a 5% stamp duty surcharge on second homes. Even former housing secretary Michael Gove floated versions of some of Labour’s proposals.
“There’s been a growing cross-party consensus on the need to reform the rental market,” noted one housing analyst. “But this latest proposal could prove counterproductive.”
Rents are already under pressure. Rightmove’s latest quarterly tracker showed average advertised rents outside London hit a record £1,349 per month in early 2025. In the capital, the figure surged to £2,698 – the 14th consecutive quarterly record.
While a modest increase in rental supply has been recorded, analysts caution that the underlying shortage remains acute. Any move that further restricts supply, they say, risks driving prices even higher.
Rayner’s reforms aim to shift the sector towards long-term stability, where tenants can treat rented properties as homes, not stopgaps. That vision is popular among many renters, especially younger generations locked out of homeownership. But critics warn that without careful calibration, the changes could backfire.
“The road to hell is paved with good intentions,” said one industry observer. “If landlords are driven out or discouraged from returning to the market, tenants will be the ones who suffer.”
As Parliament debates the bill, calls are growing for a rethink of the relisting ban. Few dispute the need for reform. But as housing pressures mount, the stakes for getting it right have rarely been higher.