Landlords are beginning to retreat from the private rental sector ahead of sweeping reforms due next year, according to one of the UK’s biggest estate agency groups.
The Property Franchise Group, which operates well-known brands such as Hunters, Fine & Country and EweMove, reported a fall in its managed rental portfolio from 153,000 homes a year ago to 150,000 at the latest count.
Chief executive Gareth Samples said the looming Renters’ Rights Bill—set to abolish “no-fault” evictions, strengthen tenants’ ability to challenge rent rises and outlaw discrimination against benefit claimants—was already prompting some landlords to offload properties. The legislation, described as the most significant overhaul of private renting since the Housing Act 1988, is expected to take effect in June.
The shift comes as landlords face mounting pressure from both regulation and speculation that rental income could become liable for national insurance. Combined with rising interest rates and record-high rents, the sector remains under strain. Despite the overall supply of rental homes improving slightly over the past year, the market is still 27 per cent tighter than before the pandemic, with average advertised rents now standing at £1,577 per month—up 46 per cent since 2020, according to Rightmove.
While the Property Franchise Group has sought to offset portfolio losses by transferring properties to new landlords, Samples believes that, in the long term, increased regulation could work in letting agents’ favour as more landlords seek professional management.
