Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Landlords Leaving Rental Sector Amid Rising Costs and Regulation
A property expert has warned that landlords are being driven out of the UK rental sector due to negative headlines and ongoing regulatory changes. Saif Derzi, landlord and co-founder of Landlord Resource, says that the continued negative portrayal of landlords could result in an exodus from the private rented sector.
Derzi highlighted that while landlords who exploit tenants should be penalised, responsible landlords should not be treated the same way. He stated that the cumulative effect of negative perceptions and regulatory pressures is making landlords feel like villains in the sector.
Recent figures from the Office for National Statistics show that rents rose by 3.7% in the year to July 2026, reaching an average of £1,393 per month. However, Derzi argues that landlords are not seeing significant benefits from these increases, as rising mortgage costs, insurance, repairs, maintenance, and compliance expenses are eroding any gains.
He pointed to a steep rise in monthly buy-to-let mortgage costs and increasing repair and maintenance expenditure as key pressures. Additional future costs are also on the horizon, including the rollout of the new PRS Database later this year, which will require landlords to pay an annual registration fee (yet to be confirmed), and mandatory membership of the new PRS Landlord Ombudsman expected to follow.
Under the Renters’ Rights Act, the abolition of Section 21 is expected to result in longer dispute cases, and meeting future homes standards is likely to bring significant repair bills. Derzi noted that new policies are shifting power away from landlords to tenants, which could lead to more landlords selling up, higher rents, or fewer people entering the sector.
These developments are particularly relevant for UK letting agents and inventory clerks, who may see changes in landlord participation and increased compliance requirements in the coming months.
Source: The Negotiator