Landlords in despair over Labour’s Renters’ Right Act are selling up, calling the coming ban on Section 21 no-fault evictions the “last straw”.
Some small landlords are quitting the private rented sector ahead of the new law coming into force on 1 May, claim estate agents and mortgage brokers.
Others have taken a “use before you lose it” approach to Section 21 “no fault” evictions to remove tenants before the practice is banned next month.
However, housing campaigners say responsible landlords have nothing to fear from Labour’s landmark legislation – the biggest shake-up in the private rented sector for decades.
They also argue that there is no evidence of a mass “exodus” from the sector that will affect the supply of homes for rent.
‘I don’t want the hassle of court cases’
Philip, a 66-year-old landlord, has been selling off his portfolio over the past few years. He has gone from a dozen properties to just three flats.
The Midlands landlord plans on selling those too, but is waiting until his current tenants want to leave before putting them on the market.
Philip said the previous government’s cut to mortgage interest tax relief, followed by higher interest rates, had made the property business less profitable.
But he decided to quit completely when Labour introduced legislation to ban Section 21s, which allow landlords in England to evict tenants with at least two months’ notice without providing a reason.
“For me, the Renters’ Rights Act and the end of Section 21 was the last straw,” Philip told The i Paper.
“I just don’t know how you would get a problem tenant out now. It means you will get bogged down in these court cases. I just don’t want that kind of hassle.”
‘There’s no real money in being a landlord anymore’
The Renters’ Rights Act means landlords will no longer be able to evict tenants without providing a valid reason for doing so – such as failure to pay the rent or anti-social behaviour.
They will have to use a Section 8 notice, which requires specific legal grounds and means landlords may have to be prepared to go to court to prove that their reasons for evictions are legitimate.
Housing campaigners have pushed for stronger rights for renters (Photo: Guy Smallman/Getty)Philip said he had used Section 21 as a “last resort” to remove a tenant after violence at his property. “I had to think about the safety of other people in the building.”
Section 21 notices were a straightforward way of “getting control of your property again, without a long process”, he said.
“Trying to get control of your property again could now be very difficult [after 1 May]. Landlords have their heads in their hands over this legislation.”
“I had enjoyed being a landlord,” he added. “But if people ask me whether to invest in property, I tell them not to. There’s no real money in it anymore.”
Paul Shamplina, founder of Landlord Action, said that although many landlords had already quit the sector, there was still some last-minute “panic” about the impact of the Renters’ Rights Act.
“It’s been a case of use it before you lose it,” he said on the ongoing use of Section 21 evictions.
He said some landlords had used Section 21s “to do rent rises, or to deal with problem tenants”, or to sell up, adding: “It has meant some pain for tenants.”
Shamplina said his “big worry” is whether the court system can cope with a possible rise in legal disputes between landlords and tenants, if section 8 notices are used more often.
‘Landlords are scared of putting a foot wrong’
David Coughlin, 56, is a landlord from the north-west of England who has downsized from 65 properties to 49 properties in recent years.
He was initially motivated to sell off by a rise in interest rates, pushing up the cost of his mortgages.
Coughlin is downsizing his property portfolio (Photo: S Menon)The Renters’ Rights Act and the two per cent increase in property income tax rates – announced at Rachel Reeves’ Budget in November – cemented his desire to downsize.
Coughlin issued Section 21 notices to his tenants to sell the properties. But he says the ending of those tenancies was amicable, and in some cases his tenants bought the properties.
“We’ve had good relationships,” he said. “I know they get a fright, but you go through a few weeks of reassurance, and make sure they get proper notice, and give them extra time if they need it.”
Coughlin, who is also an estate agent, said his firm had been “inundated” with small landlords looking to sell in recent months.
“Small landlords don’t want to deal with all of the hassle. People are scared of putting a foot wrong, and falling foul of legislation.”
Landlords still have power to evict and sell up
The new law still allows landlords to remove a tenant to sell their property or move a family member in – so long as they give their tenant four months’ notice.
However, if they have evicted someone with any intention to sell, they will not be able to put a new tenant in for 12 months – a move aimed at stopping evictions for rent hikes.
Gerard Boon, who owns a student rental property in Norwich, said both the property income tax hike and the Renters’ Rights Act have pushed him into selling up.
Boon (right), pictured with his partner, said both the property income tax hike and the Renters’ Rights Act have pushed him into selling upHe plans to sell his property later this year, when his tenants, already planning to move out, are set to leave.
Boon, also a mortgage broker, said he knew other landlords who had quit and sold up because they fear court cases that may “drag on” for many months.
He added: “Landlords don’t want that hassle and aggravation, and don’t want to lose control of their asset for an extended period.”
Ben Twomey, chief executive of Generation Rent, said it was right that Section 21 was being “sent packing”.
He said no-fault evictions had prevented renters “from raising valid concerns with our landlords” with leaks, damp and other issues – living in fear of “revenge evictions”.
He added: “National statistics don’t show waves of landlords scrambling to sell their homes now.
“However, the fact that some landlords’ reaction to long overdue protections for renters is to uproot their tenants’ lives shows just how badly we need the coming protections.”
There are only some signs of a sell-off by weary landlords since Labour introduced its tenants’ rights legislation.
The value of the UK’s private rented sector fell by £48bn in 2025, according to a recent report by Savills, suggesting some owners have exited the market.
But if some landlords have quit and sold up, it doesn’t appear to have affected rent levels so far.
Zoopla’s latest report found competition for homes is easing, and rent growth has slowed to 1.9 per cent – down from 2.8 per cent last year.
The i Paper previously reported that landlords were switching from private tenants to Home Office-backed contracts to house asylum seekers. One said he liked the “stability of knowing you’re going to get paid every month”.
A Ministry of Housing, Communities and Local Government spokesperson said there was “no evidence of a landlord exodus”, adding: “Good landlords who provide quality homes have nothing to fear from the Renters’ Rights Act.”
The law will give tenants stronger rights, but still give landlords “robust grounds for possession where there is good reason”, they added.
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