Landlords may be left without rental income for up to a year under Labour’s sweeping reforms to the private rented sector, experts have warned, as Angela Rayner’s Renters’ Rights Bill moves within one vote of becoming law.
The proposed legislation, billed as a long-overdue overhaul of tenant rights and housing standards, would introduce a 12-month ban on re-letting a property if a landlord evicts a tenant to sell but the sale subsequently falls through. The move marks a fourfold increase on the Conservatives’ current three-month rule.
Critics across the property industry say the measure could further tighten an already strained rental market, discouraging landlords from remaining in the sector and reducing housing availability at a time when demand is surging.
“This may in some circumstances cause a degree of property vacancy, in an already pressurised situation where supply is greatly required,” said Nathan Emerson, chief executive of Propertymark.
The Renters’ Rights Bill is central to Labour’s wider housing reform agenda, which also includes abolishing no-fault evictions, expanding grounds for possession under Section 8, and replacing fixed-term tenancies with open-ended, periodic agreements.
Under the new rules, landlords will need to give tenants at least four months’ notice before eviction for the purpose of selling, and a 12-month “protected interval” at the start of a tenancy will bar any sales-related evictions during that time. If a sale collapses, landlords would be blocked from letting the property again for up to a year.
“Should a landlord choose to sell the property in question, they will be restricted from re-letting that property for a period of 12 months after evicting the tenant, should the property not sell,” Emerson explained.
The National Residential Landlords Association (NRLA) warned that the measures risk worsening the housing supply crisis, as they could leave homes empty for prolonged periods due to factors beyond landlords’ control.
“Around a third of property sales fall through before completion, mostly due to buyer-related issues,” said Chris Norris, NRLA’s chief policy officer. “Given the scale of the housing crisis, it cannot be right that homes will be left empty for many months even when landlords are not to blame.”
The Ministry of Housing, Communities and Local Government defended the policy, saying it would deter evictions motivated by profit.
“Our landmark Renters’ Rights Bill will bring long overdue fairness to the market by making sure it is unprofitable for landlords to evict a tenant and deprive them of their home, just so they can rent to new tenants at a higher price,” a spokesperson said.
The changes come as the UK faces historic rental supply shortages, with only 284,000 rental properties available in March, down 23% compared to pre-pandemic levels. Industry analysts have repeatedly warned that tightening regulations, rising taxes, and increased costs are driving landlords out of the market, particularly small and accidental landlords who face shrinking margins.
Key measures in the Renters’ Rights Bill include:
• Abolishing Section 21 evictions, effectively ending “no-fault” repossessions.
• Ending fixed-term tenancies, with all agreements shifting to open-ended, periodic contracts.
• Restricting rent increases to once per year via Section 13 notices.
• Expanding Section 8 possession grounds to give landlords alternative legal routes for reclaiming properties.
• Banning rental bidding wars, preventing landlords and agents from accepting offers above the advertised rent.
The bill is expected to pass its final vote in Parliament later this year, with implementation anticipated between October 2025 and January 2026.
While tenant advocacy groups have welcomed the reforms as a necessary correction to decades of imbalance, landlords argue that the changes risk tipping the scales too far, disincentivising property investment and ultimately shrinking the rental market at a time when the UK can least afford it.
As Labour pushes ahead with its legislative agenda, all eyes will be on how the market responds — and whether stricter protections for tenants come at the cost of overall supply and affordability.
