Smaller landlords are at risk of being disproportionately affected by the forthcoming Renters’ Rights Act, according to Elliot Castle, CEO of We Buy Any Home.
With the legislation confirmed to take effect in May 2026, Castle warned that while the reforms aim to strengthen tenant rights, they could unintentionally accelerate the exodus of “mom-and-pop” landlords from the sector.
Castle said: “The confirmation that the Renters’ Rights Act will go live in May is a monumental shift in the private rental sector.
“While the intention is to reinforce tenant protections, some smaller landlords will bear the brunt of these reforms.
“Landlords with just one or two properties differ from the professional property owners who have a large portfolio of homes, they rely on rental income to support their families and often, they’re not yielding huge profits from their tenants.”
He added: “According to the latest English Private Landlord Survey, small landlords, defined as owning one to four properties, make up the majority of landlords in the private rental sector. Their properties account for around half of tenancies.
“Faced with rising compliance burdens and reduced flexibility, many are likely to exit the market. This would significantly reduce rental supply, drive up competition and ultimately push rents higher.”
Castle noted that although the government has framed the legislation as a crackdown on rogue landlords, the vast majority already operate responsibly.
He said: “Most landlords already provide safe, decent homes and comply with the spirit of the Renters’ Rights Act.
“For them, the changes may simply mean signing updated paperwork. But that message is getting lost. So far, the focus has been on catching rogue landlords, rather than clearly explaining what responsible landlords need to do to stay compliant.”
He warned that without tailored guidance, many smaller landlords, who often operating without the professional in-house support available to large portfolio owners, may struggle to keep up with new legal obligations.
He continued: “For the Act to be successful in protecting tenants, support for smaller landlords needs to be high up on the government’s agenda.
“Without clear guidance, many will struggle to adapt and tick all the boxes they need to. Otherwise, these unintended consequences risk hurting the very tenants the Act aims to protect.”
Castle urged landlords to take proactive steps to familiarise themselves with incoming changes and not wait until the last minute.
He said: “I’d advise smaller landlords to seek guidance from trusted sources, such as credited landlord associations, legal advisors or government helplines, to ensure they understand the changes and stay compliant without unnecessary stress.”
He also highlighted that fiscal policy could compound the pressures.
Castle concluded: “The upcoming Budget announcement could add yet another layer of pressure for small landlords.
“If new income tax measures on rental earnings are introduced, it could be the final nail in the coffin for many landlords.”
