The Renters Rights Act came into law last year and came into force last month, capping rent increases, abolishing Section 21 no-fault evictions, and banning bidding. Despite landlord warnings of a mass exodus, new data suggests the industry is holding steady.
Landlord activity defies predictions
According to analysis from Hamptons, 9.2% of homes listed for sale in June had previously been advertised for rent within the last five years, down from 11.3% last year. June also marked the first time since 2019 that landlord purchases exceeded landlord sales.
Research from Just Landlords shows nearly 14,000 new landlord businesses were registered in the first five months of 2026 alone, with the 2020s already accounting for more Companies House registrations than the entire period from 2000 to 2019 combined.
Landlord intentions shifting
In Handelsbanken's latest Property Investor Survey, 84% of participants said they plan to increase their portfolio in the next 12 months, up from 54% in 2025. While around one in five claimed they had sold at least one property, 59% said they were instead tightening tenant selection criteria, and 44% are considering raising rents earlier than planned.
London Renters Union data shows rents have hit record highs, skyrocketing 39% since 2020, right after the Tenant Fees Act banned various mandatory fees.
Scare tactics or reality?
A spokesperson for London Renters Union told Metro: 'The threat of a mass exodus is a favourite scare tactic of the landlord lobby in its bid to ward government off from improving renters’ rights.'
Marc von Grundherr, director of Benham and Reeves and a landlord, called the exodus a 'myth', adding: 'Yes, legislative changes have reduced profit margins in recent years, but this simply hasn’t been the deterrent the Government hoped it would.' He noted that landlords have continued to benefit from upward rental growth and capital appreciation.
Personal stories and market pressures
Rose Grayston was served a Section 21 notice to leave her home by Boxing Day in 2022, and had to accept a 30% rent increase to stay in the area. 'I don’t like the idea of hopping from place to place every 18 months, treating different bits of London like a dormitory,' she told Metro.
Jonathan Samuels, CEO of Octane Capital, argues that smaller landlords are leaving but larger commercial owners are taking over. For over 76% of those thinking of selling, increased legislation and diminishing returns were key factors. He said: 'The economics don’t really work that well for landlords if it’s just what I would call a plain vanilla transaction.'
Instead, landlords are 'adding value' by splitting properties into flats or houses of multiple occupation. Samuels noted that professional landlords tend to be more up to speed with regulations and invest in properties. However, the trend could leave tenants at the mercy of faceless corporations or forced into cramped dwellings, with rents continuing to rise.
Samuels concluded: 'Certain landlords have managed to hold on and not sell because they have passed on a lot of costs, and renters have been meeting those.'
