Figures released by the property CRM software provider Alto show that one in three letting agents are reporting a surge in independent landlords selling up and walking away, with the blame directed at the government’s Renters’ Rights Bill.
Small landlords are fleeing the buy-to-let market in drives, painting a stark picture of life under looming rental reform.
Of the 250 UK letting agents surveyed, nearly all (93%) said they were concerned about losing their independent landlord clients altogether. Furthermore, 70% of agents said that 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.
Letting agents say these smaller landlords are being squeezed from every side, overwhelmed by more red tape, new tenant rights legislation, stricter energy rules and rising mortgage rates.
“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.
“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.”
Read the orginal article: https://propertyindustryeye.com/renters-rights-bill-blamed-for-small-landlord-exodus/
