The Perils of Being a Landlord

There was a time when owning a rental property in Britain was seen as a sensible way to build long-term security. Many people bought one flat or house, rented it out, paid off the mortgage over time, and hoped it would help fund retirement.

Today, being a landlord is far more difficult.

In 2026, many landlords face rising costs, more rules, higher mortgage payments, expensive repairs and growing uncertainty. What was once seen as a steady investment is now, for many, a stressful and lower-profit business.

At the same time, the government has introduced the Renters’ Rights Act, which brings major changes to the rental market in England. These include ending Section 21 “no fault” evictions, changing fixed-term tenancies into rolling agreements, limiting rent increases to once a year, and giving tenants more rights to challenge rent rises. Existing tenants must also receive official information documents, with penalties if landlords fail to comply. (gov.uk)

Many tenants will welcome these changes. Many landlords, however, are concerned that the balance has moved too far against them.

The Current System Is Not Working Well for Many Landlords

Even before the latest law changes, landlords were already under pressure.

Over the last few years, mortgage interest rates have risen sharply. Tax changes have reduced profits. Stamp duty surcharges made buying additional properties more expensive. Insurance costs have increased. Builders and tradespeople cost more. Energy efficiency rules are becoming stricter. Local licensing schemes have added further expense in some areas.

When a tenancy goes wrong, landlords can also face long delays.

If rent is unpaid, or there are serious problems with the property or behaviour, recovering possession through the courts can be slow and costly. For smaller landlords, this can create real financial pressure.

Many landlords are not large companies. They may own one or two properties and rely on rent to cover mortgage payments and maintenance costs.

Landlords Are Leaving the Market

Because of these pressures, many landlords are selling their rental properties.

Recent reports suggest that tens of thousands of rental homes could leave the market, with many smaller landlords deciding to sell rather than continue under the new rules. Some estimates suggest more than 65,000 rental homes may exit the sector. (thetimes.com)

When landlords sell, those homes do not always remain rental properties. Some are bought by first-time buyers or owner-occupiers. Others may be empty during the sales process.

That means fewer homes available to rent.

At the same time, demand remains high. Many people cannot yet afford to buy, while others need to rent because of work moves, family changes or lifestyle choice.

This creates a simple problem: high demand and lower supply usually lead to higher rents.

Could the New Law Push Up Rents?

This is one of the biggest concerns.

The Renters’ Rights Act is designed to improve security for tenants. However, if landlords feel it is harder to manage risk, some may respond by:

1. Selling their property
2. Increasing rents when a new tenancy begins
3. Being more selective about who they accept

If fewer landlords stay in the market, competition for rental homes can become even stronger.

That can mean higher rents, especially in popular areas.

Some housing experts have warned that strong regulation without enough new housing supply can unintentionally push prices upward. (reuters.com)

The Stress of Being a Landlord

There is also a personal side to being a landlord that is often ignored.

Landlords must deal with certificates, inspections, repairs, safety checks, deposits, paperwork and changing legal rules.

Boilers break unexpectedly. Roofs leak. Appliances fail. Tenants may move out suddenly. Rent may be late. Disputes can happen.

Many tenancies run smoothly, but when problems arise they can be time-consuming and expensive.

For some landlords, especially those with only one property, it can feel like a second job.

When Might Things Improve?

There are reasons to think conditions could improve, but it may take time.

1. Better Court Processes

If possession cases are handled more quickly and fairly, landlords may feel more confident staying in the market.

2. More Housing Supply

Britain needs more homes of all types. If more homes are built, pressure on rents could ease and the market could become more stable.

3. A More Professional Rental Sector

The market may shift towards better organised landlords and companies with stronger finances and systems.

Smaller landlords may continue to leave, while larger investors grow.

My view is that the market may begin to settle between 2028 and 2030, once the new rules are fully understood and prices adjust.

Is It Worth Carrying On?

That depends on each landlord’s situation.

It May Be Worth Staying If:

• You have little or no mortgage debt
• Your property is in a strong rental area
• You have reliable tenants
• You are investing for the long term
• You are comfortable managing the work involved

It May Be Better to Sell If:

• Mortgage costs are very high
• Profits are low or disappearing
• The property needs major repairs
• You do not want ongoing stress or admin
• You need regular income with less risk

Final Thoughts

Britain still needs landlords.

Many people rely on the private rental sector because they cannot yet buy a home, and social housing is limited.

However, many landlords feel they are carrying more cost, more risk and more responsibility than before, while receiving lower returns.

If too many landlords leave the market, renters may face even fewer choices and higher prices.

The challenge for government is to protect tenants while also keeping enough landlords in the market to provide homes.

For some landlords, staying the course may still make sense.

For others, the rewards may no longer justify the effort.