Landlords have been lying but renters are the ones paying for it, according to new analysis that debunks the threat of a mass landlord exodus following the introduction of the Renters Rights Act. The legislation, which capped rent increases, abolished Section 21 no-fault evictions, and banned bidding wars, came into force last month after repeated delays. Despite dire predictions that increased regulation would prompt landlords to sell up, data from Hampton's shows that 9.2% of homes listed for sale in June had previously been rented within five years, down from 11.3% last year. Moreover, June marked the first time since 2019 that landlord purchases exceeded landlord sales.
New Landlord Registrations Surge
Research from Just Landlords reveals nearly 14,000 new landlord businesses were registered in the first five months of 2026 alone, with the 2020s already accounting for more Companies House registrations than the entire period from 2000 to 2019 combined. Meanwhile, 84% of respondents in Handelsbanken's Property Investor Survey plan to increase their portfolio in the next 12 months, up from 54% in 2025. Although around one in five landlords sold at least one property, 59% are tightening tenant selection criteria, and 44% are considering raising rents earlier than planned.
Rents Hit Record Highs
Data from London Renters Union shows rents have skyrocketed 39% since 2020, following the last major regulation, the Tenant Fees Act. A spokesperson for London Renters Union said: 'The threat of a mass exodus is a favourite scare tactic of the landlord lobby in its bid to ward government off from improving renters’ rights.' Benham and Reeves director Marc von Grundherr called it a 'myth,' adding: 'Legislative changes have reduced profit margins in recent years, but this simply hasn’t been the deterrent the Government hoped it would. While many landlords will always be “thinking of selling”, the majority aren’t because they’ve continued to benefit from upward rental growth and the capital appreciation of their initial investment.'
Personal Stories of Impact
Rose Grayston was served a Section 21 notice on Boxing Day 2022 and had to accept a 30% rent increase to stay in the same area. She said: 'It really shouldn’t be that you have to have a big inheritance coming your way in order to have a basic level of housing security, such that you’re not going to be kicked out with two months’ notice right before Christmas.'
Small Landlords vs. Corporate Owners
Jonathan Samuels, CEO of Octane Capital, notes that small landlords with one or two properties are leaving, but larger commercial owners are taking over. For over 76% of those thinking of selling, increased legislation and diminishing returns are key drivers. 'The economics don’t really work that well for landlords if it’s just a plain vanilla transaction,' he said. However, investors are 'adding value' by converting properties into multiple units, yielding higher returns. This shift could depersonalise housing, with tenants at the mercy of faceless corporations and forced into smaller dwellings. Despite some landlords selling, house prices have remained stable, while tenants bear the brunt through higher rents. 'Certain landlords have managed to hold on because they have passed on a lot of costs, and renters have been meeting those,' Samuels added.
