Clare Bowen, a partner at the accountants says: “Larger landlords have more scope to spread costs and can offset one property against another. For someone with one or two rentals, there isn’t that flexibility. They don’t have the same access to trade support or professional management and every new rule adds to the strain.”
She points out that accidental landlords—those who ended up renting out a property due to life changes rather than strategic investment—are likely to bear the brunt of the new pressures.
And says: “We often see couples later in life who’ve moved in together and decided to rent one of their homes rather than sell it. They’re not doing it to make money, they’re just trying to cover the costs of the property. The new Renters Rights Bill will make that much harder. I think we’ll see some be pushed to decide it’s simply not worth it.”
Bowen warns that new restrictions—such as annual limits on rent increases, stricter deposit rules, and the ban on advance rent requests—will erode the financial safety net landlords depend on when faced with unexpected costs or tenant issues.
She says: “If a tenant stops paying, the impact will be felt much faster. Combine that with the tougher eviction rules, and it could leave landlords in a difficult position. There needs to be some balance between protecting tenants and recognising that landlords have financial responsibilities too.
“You can’t keep piling on costs without expecting rents to rise. For some, the maths just doesn’t work anymore..
“It’s good to see tenants’ rights being strengthened, but landlords will need clear guidance on what to do when a tenant stops paying, or when they’re stuck in months of court delays.”
Bowen adds that the introduction of a new Ombudsman and the Private Rented Sector Database could prove valuable—provided it’s implemented well. She emphasises that their success will depend on whether it genuinely enhance education and accountability for both landlords and tenants.
“Some landlords don’t even realise they should be paying tax because their mortgage repayments match their rent. They don’t understand that only the interest is deductible, not the repayment element.
“Before we bring in more penalties, there needs to be more education. The database could help with that, but it needs to support landlords as well as monitor them.”
She believes that as smaller landlords exit the sector, larger investors will be well-positioned to capitalise—seizing new opportunities in a reshaped market.
“We’ll probably see institutional investors stepping in where smaller landlords leave. There’s strong demand for rental property, especially in the big cities, and investors with cash will take advantage of that.”
How ever she warns that the Renters Right Bill will not be the end of the private rental changes, saying: “We’ll probably see institutional investors stepping in where smaller landlords leave. There’s strong demand for rental property, especially in the big cities, and investors with cash will take advantage of that.”
She advises clients to avoid hasty decisions and instead consult a professional to determine the most appropriate course of action for their individual circumstances.
“Review your portfolio regularly. Look at each property on its own merits and check whether it’s still worth holding. Some landlords will find they’re better off selling one or two and improving the rest. It’s about going in with your eyes open and keeping a close watch on what each change means for your finances.
“With the Autumn Budget now just weeks away, it’s worth keeping an eye on what further changes the Labour Government may bring forward during their time in Parliament.”