More than a third of UK landlords are considering selling their properties in the next year as regulatory changes reshape the private rented sector, new research shows.

The 2025 Landlord Report from insurance provider Simply Business, based on a survey of more than 1,000 landlords, found that 39% are weighing an exit from the market.

The Renters’ Rights Bill, which is expected to receive Royal Assent this autumn and come into effect in early 2026, is cited as a primary concern by over a quarter of respondents.

The Bill will ban Section 21 “no fault” evictions, cap rent increases to once a year, and impose higher property standards, including a requirement for all rented homes to have an EPC rating of C or above by 2030.

Landlords also face additional pressures from Making Tax Digital, which will replace annual self-assessments with quarterly returns for those earning over £50,000 from April 2026.

SENSE OF TREPIDATION

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 (RRB) is set to drastically change the rental market in the next 12 months.

“But many landlords (76 per cent) 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.”

BIGGEST CHANGE IN A GENERATION

She added: “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.”

The findings highlight the challenge facing ministers as they attempt to balance stronger tenant protections with the need to sustain landlord participation in a sector that houses close to five million UK households.