Landlords are beginning to exit the rental market ahead of major reforms set to take effect next month, raising fresh concerns about the future of supply.
One property expert has told GB News he is already preparing to sell his portfolio, warning the changes could push rents higher.
Gerard Boon, Managing Director of Boon Brokers, has confirmed he will offload his rental properties this year as the Renters’ Rights Act prepares to take effect next month on May 1, 2026.
Mr Boon described the legislation as “highly damaging for landlords and tenants, but more so for tenants.”
The landlord and mortgage broker believes the new rules will push property owners out of the market entirely, reducing the number of homes available to rent.
He said: “This is because it will drive many landlords to sell their properties. A reduction in rental supply will directly increase rents charged to tenants in the medium and long-term. It’s a real shame for the market.”
Mr Boon confirmed he plans to sell his rental property later this year once early repayment charges expire, citing a combination of financial and policy pressures.
He said landlord profits are being “squeezed by rising costs”, while property is “an illiquid asset” that is harder to sell quickly, making it less attractive than alternatives like stocks and shares.
He added that the Renters’ Rights Bill, alongside what he described as the “general demonisation of landlords”, had been the “tipping point” behind his decision to exit the market.
The Act brings major changes to renting rules for both landlords and tenants.
“No-fault” evictions will be scrapped, meaning landlords can only evict tenants for specific legal reasons. Rent can only be increased once a year and must reflect market rates, with tenants able to challenge rises if they think they are too high.
Rental bidding wars will be banned, so landlords must list one set price and cannot accept higher offers. Fixed-term tenancies will also be replaced with rolling contracts, allowing tenants to leave at any time with two months’ notice.
Mr Boon warned that the abolition of no-fault evictions will fundamentally change how landlords assess prospective tenants.
Without the ability to remove difficult occupants through Section 21, property owners face the prospect of costly and drawn-out tribunal proceedings if problems arise.
“If landlords take on ‘problem tenants’, who may be inclined to drag them through the tribunal system, this will be costly,” Mr Boon said.
Property owners face the prospect of costly and drawn-out tribunal proceedings if problems arise
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GETTY/BOONBROKERS
He predicted that landlords remaining in the market will adopt far more rigorous vetting procedures before agreeing to let their properties.
“We will likely see far stricter measures introduced by landlords when assessing tenant applications. For example, there may be interviews, bank statement checks, employment checks, and more,” he explained.
The tougher screening could make it harder for some renters to secure accommodation, particularly those with irregular income or limited employment history.
Mr Boon expects tenants to face substantial rent hikes as property owners exit the market in significant numbers.
“Yes, tenants are likely to see sizeable increases in rents charged by landlords,” he said. “It’s basic supply and demand.”
He forecast annual rent rises of at least five per cent if the anticipated decline in available properties materialises.
The mortgage broker observed that corporate investors are increasingly purchasing buy-to-let properties from departing private landlords. His brokerage has seen a marked uptick in enquiries from institutional buyers.
Mr Boon argued that renters find themselves in a particularly vulnerable position
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GETTYMr Boon cautioned that this shift poses risks for renters. Large corporate landlords acquiring multiple properties in specific locations could effectively dominate local rental supply.
“This is a dangerous position for tenants, as the lack of competition will likely increase rents further,” he warned.
Mr Boon argued that renters find themselves in a particularly vulnerable position compared to landlords who choose to leave the sector.
“So many tenants don’t have a suitable deposit to raise a mortgage to buy a property, and they are unable to move back in with their parents, so they are at the mercy of the rental market,” he said.
Property owners, by contrast, can simply redirect their capital elsewhere without suffering any real impact on their quality of life.
“Landlords view their rental properties as assets,” Mr Boon explained. “Even though it’s irritating, they can sell their properties and move their money to a different asset class without it damaging their standard of living.”
Campaigners have called for more rent controls for many years
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GB NewsHe described the situation as “a real shame for the market,” with those least able to adapt bearing the greatest burden of the changes.
Scott Goldstein, Property Disputes Partner at Payne Hicks Beach, has also raised concerns about the legislation’s unintended consequences.
The property lawyer said many smaller landlords are still scrambling for guidance as one of the most significant shifts in residential letting approaches.
Mr Goldstein warned that rising legal obligations and costs will accelerate the departure of private landlords, with larger institutional investors taking their place.
This transition creates potential dangers for both rental availability and pricing as the market adjusts, potentially leaving tenants worse off than before.
The stakes are considerable. Private renting now accounts for 4.4 million households in England, representing 19 per cent of all homes compared to 14 per cent in 2008-09.
Mr Goldstein anticipates tribunals will play an increasingly prominent role in settling disputes and determining whether rent adjustments are fair.