Landlords across the United Kingdom are bracing themselves for a season of sweeping change as the government’s Renters’ Rights Bill moves rapidly toward becoming law. This legislative overhaul, described by property professionals as a once-in-a-generation shift, is set to have immediate and far-reaching effects on the private rented sector (PRS), impacting both landlords and tenants.
The latest data from a May 2025 Landbay survey, released this week, offers a snapshot of landlord sentiment as the sector stands on the cusp of reform. According to Landbay, 58% of UK buy-to-let landlords have no plans to sell any properties in the next 12 months—a notable increase from 47% in last year’s survey. This uptick in confidence comes despite mounting regulatory and financial pressures.
Rob Stanton, sales and distribution director at Landbay, called the results “hugely encouraging,” noting, “This latest survey data is hugely encouraging and once again demonstrates just how robust and resilient buy to let landlords are.” He added, “In the face of increasing operating costs and the threat of new legislation, this commitment from landlords to stay put is a huge win for the PRS and for renters all over the country – especially when you consider the massive role rented accommodation plays in the UK’s housing mix.”
Drilling down into the numbers, the strongest intention to retain properties comes from non-portfolio landlords—those with fewer than four mortgaged homes—accounting for almost a third of those not planning to sell. Nearly a quarter of mid-sized landlords, with portfolios between four and ten properties, also expressed no plans to reduce their holdings.
Yet, not all landlords are holding firm. The survey found that 15% of respondents plan to sell up to 10% of their portfolio, 4% may offload up to a quarter, and fewer than one in ten signaled they might sell half. The primary motivations for selling are clear: 35% of those considering sales cited the looming specter of regulation—most notably the Renters’ Rights Bill—while 31% pointed to landlord taxation, a decrease from the 51.4% who named taxes as their main concern in 2024.
Despite this, there is a sense of optimism about future investment. Landbay’s research revealed a sharp recovery in buying plans, with more than half of landlords aiming to invest in new rental homes within the next year—nearly double the 27% recorded in the previous survey. As Stanton emphasized, “As a sector, we absolutely need to get behind these landlords and give them the confidence to not just stay put, but to expand and succeed.”
Meanwhile, tenants are feeling the squeeze. According to the latest Office for National Statistics (ONS) data, the average UK monthly private rent rose by 5.7% to £1,348 in the 12 months to August 2025. While this growth rate is slightly down from 5.9% in July, it still outpaces wage inflation and continues to put pressure on renters’ budgets. The rent increases vary by region: England’s average stands at £1,403 (up 5.8%), Wales at £811 (up 7.8%), Scotland at £1,002 (up 3.5%), and Northern Ireland at £860 (up 7.2% as of June 2025). Within England, the North East saw the highest rent inflation at 9.2%, while Yorkshire and The Humber recorded the lowest at 3.4%.
Russell Anderson, commercial director of mortgages at Paragon Bank, noted, “Historically, rent inflation has broadly correlated with wage inflation. The mismatch between the supply of and demand for privately rented homes in recent years has seen rents outpace wages, placing financial pressure on tenants.” He added that recent decreases in buy-to-let mortgage rates could help improve affordability and increase supply, but cautioned that the regulatory environment remains a key consideration for landlords.
Alex Upton, managing director of specialist mortgages and bridging finance at Hampshire Trust Bank, echoed the urgency of striking a balance in the rental market. “Balancing the rental market must be a top priority for Steve Reed as he steps into the role of Housing Secretary,” Upton said. He pointed to data from Propertymark showing that tenant demand is rising sharply, far outpacing any increase in available rental stock. “That imbalance is keeping rents under pressure, and until we see meaningful progress on supply, any short-term easing is likely to be temporary.”
Tenant advocacy groups are calling for more direct government intervention. Ben Twomey, chief executive of Generation Rent, argued, “Homes are the foundations of our lives, but rents continue to rise faster than our wages, swallowing more and more of our income. High rents push people into homelessness and trap them in temporary accommodation, they pull children into poverty and prevent people from saving for the future.” Twomey urged the government to devolve powers to local Mayors to allow them to cap rent increases, stating, “We rightly have caps on our energy and water bills, but the same protections don’t exist to stop landlords from pricing us out of our homes. The government can and must act through devolving powers to Mayors to limit rent increases in their areas.”
The Renters’ Rights Bill itself is now in the so-called ‘ping pong stage’ in Parliament, with the government having rejected a series of amendments proposed by the House of Lords. Lucy Jones, chief operating officer at Lomond, summarized the current state of play: “The Bill is well on its way to Royal Assent, currently in its ‘ping pong stage’. It is highly anticipated it may become law ahead of Party Conference season.”
Key reforms—including the abolition of Section 21 “no fault” evictions, the introduction of new possession grounds, the end of fixed-term tenancies, and restrictions on rent-in-advance—will come into force immediately once the Bill becomes law. Other measures, such as the establishment of a landlord database and a potential Ombudsman requirement, will follow after a transition period. Among the rejected amendments were proposals to allow landlords to request a separate pet deposit, to require tenants to take out pet insurance, to shorten the 12-month re-letting restriction after a failed sale, and to extend student possession grounds to smaller properties. The government argued that these changes would either place undue financial strain on tenants or risk undermining protections for vulnerable groups.
With Royal Assent expected this autumn, landlords have only a matter of weeks to make final preparations for the significant changes ahead. The sector is keenly awaiting the final version of the legislation, eager to see how the details will shape the future of renting in the UK.
As the private rented sector stands at this crossroads, the coming months will reveal whether renewed landlord confidence and legislative reform can together bring relief to a market where tenant demand continues to outstrip supply and affordability remains a pressing concern.
