One in three letting agents saw a rise in small landlords leaving the rental market in the past year, with many blaming the Renters’ Rights Bill, according to data from Alto.
Research from the property customer relationship management (CRM) software provider found 34% of agents reported more independent landlords selling up.
Of the 250 UK letting agents surveyed, 93% said they were worried about losing these clients completely.
The reason for the exodus was linked to the planned scrapping of fixed-term tenancies and Section 21 ‘no-fault’ evictions under the new Bill.
70% of agents said some of their landlords had already sold properties in the last twelve months.
Most landlords quitting were smaller players with just one or two homes, often used as a retirement pot or inherited.
Additionally, letting agents reported these landlords were struggling with higher mortgage rates, new energy rules, tougher tenant rights, and a feeling they were being unfairly targeted.
Riccardo Iannucci-Dawson (pictured), CEO at Alto, said: “Independent landlords are the lifeblood of the sector.
“If we lose them, tenants lose choice and stability – and we risk pushing rents even higher.
“Letting agents are facing unprecedented pressure – from legislative upheaval to operational chaos.”
Iannucci-Dawson added: “At Alto, we’re not just flagging the challenges of reform. We’re building tools to help agents meet them head-on.
“From automating Right to Rent checks and periodic tenancy creation to enforcing rent review limits and managing tenant requests more transparently, we’re making compliance faster, easier, and more robust.
“These updates aren’t theoretical either, they’re part of a focused product roadmap designed to reduce admin, cut risk, and give agents the confidence to navigate reform without losing landlords or lettings income.”
