39% of landlords are considering leaving the rental market within the next year, as sweeping regulatory changes and the forthcoming Renters’ Rights Bill create growing uncertainty across the sector.

According to the 2025 Landlord Report from Simply Business, which surveyed more than 1,000 landlords, the same percentage (39%) still view letting property as worthwhile, while a quarter (26%) remain undecided.

The Renters’ Rights Bill, expected to receive Royal Assent this autumn before coming into force in early 2026, will overhaul rental law with measures to limit rent increases and improve property standards. A quarter (26%) of landlords cited the Bill as a major concern.

SECTION 21 BAN PROMPTS WORRY

The report found that the abolition of Section 21 ‘no-fault’ evictions is landlords’ biggest worry, cited by 38% of respondents, while 56% expressed concern that new eviction procedures will be lengthier and more costly.

Despite this, the findings suggest that most landlords maintain stable and long-term tenancies. More than two-thirds (71%) have never used a Section 21 notice, while 97% have housed the same tenants for over a year and almost a third (31%) for more than five years.

One landlord based in the North West said: “I have never actually used a Section 21 but I have used the threat of it when a tenant seriously breached the tenancy agreement. Having it available ensures better compliance from tenants and less risk for landlords.

“I have never had to call the police to my own home, but the fact that I can do it makes us all safer and provides reassurance to those doing no wrong.”

While 8% of landlords said they were concerned about rent increase limits, most appeared unconcerned by the proposed annual cap. Over half (54%) had not raised rents for existing tenants in the past year, and two-thirds (67%) said they do not intend to change their approach once the Bill becomes law.

COSTS OF ENERGY UPGRADES

The government’s drive for improved energy efficiency could also impose steep costs. Under the new rules, all rental properties must achieve an EPC rating of C or above by 2030 – up from the current minimum of E – in a bid to lower tenants’ energy bills by around £240 a year.

Simply Business estimates that the sector could need to invest as much as £9 billion to meet the standard, with 13% of landlords expecting to spend more than £10,000 per property. More than one in five (21%) admitted they do not yet understand what the EPC changes involve or how to comply.

A Nottingham landlord said: “I might have no option but to sell one of my properties. The EPC system lacks clarity. There is a mismatch in ratings of similar properties on my street, therefore there appears to be an element of subjectivity to ratings.”

TAX CHANGES ADD TO COMPLEXITY

Landlords also face tax reform under the government’s Making Tax Digital programme, which will require quarterly submissions from April 2026 for individuals with a combined annual income above £50,000.

Almost seven in ten (68%) landlords said they feel unprepared for the change, with 41% anticipating higher accountancy costs, 45% expecting increased time demands, and 35% concerned about greater complexity. Only 5% believe the new process will improve efficiency.

Julie Fisher, UK chief executive of Simply Business, said: “There’s a sense of trepidation amongst the nation’s landlords. The long-awaited Renters’ Rights Bill is set to drastically change the rental market in the next 12 months.

“But many landlords (76%) fear the new regulations won’t increase standards in the market the way the government hopes.

“Insuring more than 300,000 landlords allows us to gain first-hand insight into the integral role they play in the housing market. What’s clear is their desire to continue providing quality housing while maintaining viable businesses.

“With the biggest changes to tenancy law in a generation almost here, alongside several other regulation changes, landlords are asking for clarity.

“It’s vital they’re given the time and guidance needed to continue to provide much-needed housing for almost five million households nationwide.”