A substantial proportion of landlords say they would halt investment in their properties if rent controls are introduced, raising concerns that the Renters’ Rights Bill could trigger a decline in standards across England’s private rented sector.
According to research from buy-to-let lender Landbay, 37% of landlords would stop investing in their properties under proposed new rules to limit rent increases.
The Renters’ Rights Bill, currently making its way through parliament, would introduce sweeping changes to the sector, including a two-month notice period for rent rises and the right for tenants to challenge increases through a tribunal.
Landbay estimates that the consequences could be severe. With 4.7 million privately rented homes in England, the findings suggest around 1.75 million of these would face reduced investment were the Bill to pass.
The lender also found that 16% of landlords would consider selling all their rental stock, potentially removing a further 750,000 homes from the sector.
Rob Stanton, sales and distribution director at Landbay, said: “It’s really important that we go into the Bill with our eyes open. Rent control always has unintended consequences – and let’s be frank, that is exactly what we are signing up for with the Renters’ Rights Bill.
“We can see it in areas that have adopted it like Berlin, New York, and San Francisco.”
Citing international examples, Landbay drew parallels with Berlin, where a five-year rent freeze introduced in 2020 led to landlords exiting the market, a sharp fall in listings, and a reduction in new construction.
In New York, rental caps have resulted in a shadow market of informal payments and sublets. San Francisco, meanwhile, saw rent control reduce the supply of rental housing by 15%, according to one study, while reinforcing inequality between longer-term tenants and newcomers.
Landbay’s data suggest the Bill’s measures could impact 44% of the private rented sector through a combination of disinvestment, disposals, and non-compliance. Around one in eight landlords admitted they might bend the rules to maintain rents at market levels.
Stanton added: “Rent controls, while well-intentioned, risk driving landlords out of the market or into workarounds that undermine the very tenants they aim to protect. We’re staring at a future where quality rented housing dwindles.”
He warned that the legislation risks repeating the mistakes of other global cities. “The data from Berlin, from New York, and from San Francisco screams caution — capping rents distorts markets, slashes supply, and creates black markets.
“Landlords aren’t the enemy; they’re responding to a market being squeezed dry. Ignore the evidence, and we’ll all pay the price. This is very bad news for the government.”
