Letting agents report surge in property sell-offs as regulatory changes loom
A significant number of small landlords are leaving the UK’s buy-to-let sector, with many citing the government’s proposed Renters’ Rights Bill as a key factor, according to new research from property software provider Alto.
A recent survey of 250 letting agents found that 34% have observed an increase in independent landlords selling their properties and exiting the market. The study also revealed that 93% of agents are concerned about losing their independent landlord clients, while 70% said some landlords had already sold properties in the past year.
The Renters’ Rights Bill, which seeks to abolish fixed-term tenancies and remove Section 21 ‘no-fault’ eviction powers, has drawn mixed reactions. Tenant advocacy groups have welcomed the reforms, but critics argue that the changes could reduce the supply of rental properties and lead to higher rents.
Most landlords leaving the sector own one or two properties, often acquired through inheritance or as retirement investments. Many are reportedly discouraged by a combination of rising mortgage costs, stricter energy efficiency regulations, and new tenant rights legislation.
“Independent landlords are the lifeblood of the sector,” said Riccardo Iannucci-Dawson (pictured), chief executive of Alto. “If we lose them, tenants lose choice and stability – and we risk pushing rents even higher.”
The shift has direct implications for mortgage brokers, who may see reduced demand for buy-to-let mortgages as more landlords exit the market. Brokers are likely to adapt by focusing on remortgages, first-time buyers, or advising landlords on regulatory changes, while also providing increased guidance on compliance and risk management.
Meanwhile, Alto, which works with more than 25,000 letting agents across the UK, has called for clearer government guidance on the reforms. The company said it has also introduced new tools to help agents manage compliance, contract changes, and tenant communications.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
