Concerns that the Renters' Rights Act is driving a sudden exodus of landlords are likely to be overestimated, according to some industry experts and data from OnTheMarket that tracks homes that were listed for rent and have since been relisted for sale within six months.
The survey, which aims to measure landlord exits from the private rented sector, showed a slow but steady increase in the number of landlords putting rental properties up for sale. This started in January 2024 during previous policy shifts and linked to difficulties in buy-to-let economics, the company said in a statement.
Data found converted listings coming to market increased by 91% in January 2024 to 1,265, compared with the previous month. This was a 41% spike year on year.
Since the initial jump in 2024, the total has risen 94% over two years to January 2026 before seeing a surge in March 2026, up 40% on February. Levels of listings were also more than double March 2024 figures, which was 120% increase.
This increase came two months before the Renter’s Rights Act date of implementation on 1 May 2026. Yet, the study suggested that the increase was due to a series of factors including seasonal timing, which has landlords waiting for the ideal spring sales window to bring heir properties to market.
Jason Tebb, president of OnTheMarket, said: “Much of the debate around the Renters’ Rights Act has focused on the idea that it will trigger a sudden landlord exodus. However, our listings activity data suggests a more nuanced picture. Rather than a sharp, policy driven cliff edge, the trend points to a market that has been shifting for some time.”
OnTheMarket operates OnTheMarket.com, a leading UK residential property portal provider. OnTheMarket is owned by CoStar Group, an S&P500 leading provider of online real estate marketplaces, information, analytics and 3D digital twin technology. CoStar News is part of the CoStar Group.
The Act, which includes landmark private rental sector changes include axing of "no-fault" evictions, rent controls and inclusion of periodic tenancies, passed into law on 27 October.
Despite its aims at bridging the gap between landlords and tenants, and improving housing standards for private renters in line with the government’s manifesto, the changes have received mixed reviews from the commercial real estate world.
“The increase in listings appears to have been building well ahead of the Act’s commencement, reflecting a combination of pressures that have been weighing on buy-to-let economics,” Tebb added. “Higher interest rates feeding through since 2022, changes to the tax treatment of property investment, rising maintenance and insurance costs, and the relative appeal of alternative investments have all played a role in reshaping landlord behaviour. In that context, the Renters’ Rights Act looks less like the sole cause of change and more like a tipping point for some landlords who were already reassessing whether buy to let still stacks up. For some, it may be the final catalyst that prompts a market exit, but for others, it will be business as usual.
“That helps explain why the more recent rise in listings should be interpreted carefully. Part of the sharper increase this year may reflect timing, with some owners choosing to list into the traditional spring uplift rather than earlier, while wider economic and geopolitical uncertainty may also be encouraging landlords to simplify finances and reduce exposure.
“Overall, the data points to a sector in transition rather than one reacting to legislation in isolation. The key challenge now is ensuring that this structural shift does not exacerbate further supply pressures in markets where rental homes are already in short supply.”
Other industry professionals have raised concerns over the implementation of the Act now that the industry has a clearer picture of landlord sentiment in response to the changes, with some warning that landlords are "unprepared" for the possible legal and financial fallout.
The reforms are the most significant changes to England’s private rental sector in decades, and insurance firm Everywhen has warned that the reforms are not solely regulatory change but part of a broader "cultural reset" for the private rental market which thousands of landlords are still not ready for.
James Cooper, trading director for Everywhen said: “Much of this should be positive for the health of the market in the longer term, but it does mean landlords will need to be more prepared and more deliberate. Reviewing tenancy structures, understanding how rent reviews will be assessed, and making sure properties and insurance arrangements are fit for the new framework will be essential. Those who engage early will be far better placed to adapt as the changes take effect.”
This has been echoed by legal experts, who have warned that the the importance of the Act must not be understated, as it is fundamentally altering the balance between landlords and tenants and may have other unintended, unforeseen or unexpected consequences.
“The question is whether the Act could be counterproductive as a piece of legislation when considered against the Government’s aims. It primarily aims to protect tenants on lower incomes and reduce homelessness, but the consequence of this 're-balancing exercise' may paradoxically be a negative one. It places a huge regulatory burden on an extremely wide variety of landlords, small and large. It is likely to cause some landlords to leave the market altogether and tighten availability of rental properties, which would be an unattractive outcome for all stakeholders,” said Lauren Fraser, senior associate in the real estate disputes team at Charles Russell Speechlys.
She added: “It is also likely to have a significant impact on larger landlords and their appetite in the market, particularly international investors looking to make investments in the UK, or existing holders of substantial interests in the UK’s private rented sector. It is easy to see that those investors may be discouraged by the Act from backing and investing in the UK’s property market. At a time when the government is generally attempting to stimulate growth and international investment, this could end up being a serious, unintended consequence of the Act.”
Laura Southgate, partner at Cripps, echoed concerns about landlord sentiment. She said: “There is real apprehension among landlords and agents about the Renters' Rights Bill coming into effect. Most are well-prepared, but anxious about compliance. The legislation is complex and, in places, disconnected from the day‑to‑day realities of the private rented sector. There is also a lack of clarity on key issues such as anti‑rental bidding and bans on advance rent, points that directly affect business models and marketing strategies. Many of these questions may only be resolved through case law or further guidance."
Proponents of the Act however, have praised the legislation's attempt at bettering areas of the market that left many tenants with a challenging rental experience.
The Association for Rental Living has welcomed the Act as the first step in “improving the rental experience” and supporting the “professionalisation of the rental sector.”
Brendan Geraghty, its CEO, said: “The Act’s measures signal that the Government takes renter welfare seriously yet the Build to Rent sector, which professionally-manages over 147,000 homes across the UK, has actively operated to much of these standards for a decade. The Rental Living Code of Practice, launching this May, will publicly define these standards for Build to Rent operators and give consumers transparency.
“Investors in the Build to Rent sector welcome the certainty and clarity the Renters’ Rights Act, and its implementation roadmap, brings with 67% of leading institutional investors surveyed by the Association for Rental Living stating that the Act made no material change to their confidence in Build to Rent as an asset class.
It remains to be seen how these changes will impact the sector in the long run, meanwhile the industry will await further changes and more clarity, in the next phase of implementation.