Small Landlords Quitting in Droves as Rental Reforms Loom
One in three letting agents report small landlord exodus – and blame the Renters’ Rights Bill
- 34% of agents report more small landlords quitting the market
- 93% fear losing independent landlords due to upcoming reforms
- 70% say at least some landlords have already sold up
Britain’s backbone landlords are quitting in droves and the Government’s Renters’ Rights Bill could be the final nail in the coffin.
A wave of small landlords are fleeing the buy-to-let market, according to a bombshell new survey – with one in three letting agents (34%) reporting a surge in independent landlords selling up and walking away.
The figures, released by the leading property CRM software provider Alto, paint a stark picture of life under looming rental reform.
Of the 250 UK letting agents surveyed, nearly all – a staggering 93% – said they were concerned about losing their independent landlord clients altogether.
And the exodus isn’t just hypothetical: 70% of agents said at least some of their landlords had already sold off properties in the past year.
Industry insiders are blaming the Government’s Renters’ Rights Bill, which will scrap fixed-term tenancies and axe the controversial Section 21 ‘no-fault’ eviction powers. While tenant rights groups have hailed the changes as overdue, critics warn the measures risk gutting the rental sector and pushing up rents.
Most of those quitting the market are smaller player landlords who own just one or two properties, often inherited or bought as retirement nest eggs. For them, a fresh wave of red tape and uncertainty is simply too much.
Letting agents say these smaller landlords are being squeezed from every side: rising mortgage rates, stricter energy rules, new tenant rights legislation, and a growing sense they’re being vilified.
“Independent landlords are the lifeblood of the sector,” said Riccardo Iannucci-Dawson, CEO of Alto. “If we lose them, tenants lose choice and stability – and we risk pushing rents even higher.”
Alto, which supports over 25,000 letting agents across the UK, is urging the Government to offer clearer guidance, but is also stepping up itself.
The company offers end-to-end lettings progression tools that help agents manage everything from compliance and contract changes to tenant communication and notice periods. With tailored workflows and automation built in, Alto helps agents stay on top of reform without drowning in admin.
“Letting agents are facing unprecedented pressure – from legislative upheaval to operational chaos,” Iannucci-Dawson added.
“At Alto, we’re not just flagging the challenges of reform. We’re building tools to help agents meet them head-on. From automating Right to Rent checks and periodic tenancy creation to enforcing rent review limits and managing tenant requests more transparently, we’re making compliance faster, easier, and more robust.
“These updates aren’t theoretical either, they’re part of a focused product roadmap designed to reduce admin, cut risk, and give agents the confidence to navigate reform without losing landlords or lettings income.”
With thousands of landlords already heading for the exit, letting agents are increasingly being called on to not just market homes but manage reform. And without the right tools and support, many fear the sector could buckle under the weight of change.
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