A wave of landlords scrambling to sell their properties ahead of sweeping rental reforms is triggering sharp price drops in some areas, with flat prices falling by up to 15 per cent, according to estate agents and property experts.
According to a report in The i Paper the introduction of the Renters’ Rights Bill this October has prompted a flurry of activity in the property market, with landlords seeking to offload flats before the legislation takes effect. The bill, which aims to bolster tenants’ protections, includes the creation of a new ombudsman for renters and the abolition of Section 21 “no-fault” evictions—a controversial clause that allows landlords to remove tenants without providing a reason.
While the bill has been hailed by housing advocates as a victory for tenant rights, estate agents warn of unintended consequences. In particular, the mass exit of landlords is adding downward pressure on property prices, especially in areas dominated by flat rentals.
“It feels like a race to the bottom,” said Steve Boone, director at Elliotts Estate Agents in Brighton. “There’s an unprecedented amount of one- and two-bedroom flats flooding the market, and prices are being slashed.”
Boone said he has seen properties drop by as much as £40,000. Flats initially listed at £270,000 are now struggling to attract buyers even at £230,000—a drop of nearly 15 per cent. Just last week, his agency listed eight one-bed flats while more than ten others in the area reduced their asking prices.
Data supports the trend. A recent HMRC and Ipsos survey of 1,243 landlords revealed that one in four intend to sell at least one property within the next year. Over half cited regulatory changes, including the new bill, as their main reason for exiting the market. Another survey by SpareRoom found that four in ten landlords with smaller portfolios plan to leave the rental sector altogether.
The impact appears to be most acute in the flat market, where properties are more commonly used as rental investments.
“Landlords are less inclined to sell houses—they’re more stable rentals,” Boone explained. “But flats are more transient, higher maintenance, and now, with these regulatory pressures, they’re becoming too much of a liability.”
One Brighton homeowner, who asked not to be named, said they were advised to lower their flat’s asking price to £270,000, down from over £300,000, to stay competitive with investor sell-offs.
Doug Shephard, director at Home.co.uk, said the impending reforms are casting a “dark cloud” over the property market.
“The Renters’ Rights Bill is bloating the sales market with ex-rental properties, which is driving prices down,” Shephard said. “It’s a fundamental shake-up that has many landlords either reconsidering or actively abandoning the sector.”
Despite the turmoil for sellers, the shift could offer a silver lining for first-time buyers.
“If you’re a first-time buyer, now is a golden opportunity,” said Boone. “Prices are lower, and there’s a lot of choice. But many are hesitating due to mortgage rates and market uncertainty.”
At the same time, the sell-off may carry longer-term consequences for renters. With fewer properties available to let, demand is rapidly outpacing supply—pushing up rental prices.
“We’re seeing 20 viewings per rental property,” Boone said. “Some landlords are testing the waters by raising rents by £100. So far, the market is absorbing it.”
The Royal Institution of Chartered Surveyors echoed these concerns in a recent report, noting that tenant demand is continuing to rise while landlord instructions decline. The imbalance is likely to drive rents even higher in the months ahead.
As the Renters’ Rights Bill approaches implementation, the housing market is bracing for more volatility—offering opportunities for some and challenges for many more.