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17/12/25 3:30 pm
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If I had a pound for every landlord who has said to me this year, “Paul, I’m not sure I can do this anymore,” I’d probably be able to offset the latest tax changes. Joking aside, 2025 has tested landlords like no other year I can remember. Not because change is new, landlords are used to that and a resilient bunch, but because so much has landed at once, with so little reassurance about what comes next.
After years of talk and uncertainty, the Renters’ Rights Bill is now law. What once felt like something to plan for “down the line” has suddenly become very real. The abolition of Section 21, the move to periodic tenancies and tougher enforcement powers represent a fundamental shift in how landlords manage risk. While improving standards and tenant security is a reasonable goal, many landlords are questioning whether the system behind these changes is actually ready to support them enough to remain in the sector.
The courts are my biggest concern, as I have been frank about over the last few years. We have known for years that they were under pressure and that possession cases were taking too long. At the same time, the private rented sector has grown and become home to millions more people. Yet very little has been done to strengthen the system ahead of these reforms. As Section 21 disappears, landlords will be forced to rely on Section 8 routes that are slower, more complex and dependent on an already overstretched court process. That doesn’t inspire confidence.
It’s no surprise, then, that we have seen a sharp rise this year in landlords trying to regain possession before the rules change. At Landlord Action, we saw a 62 per cent increase in possession instructions in September compared with the same time last year. These are not knee-jerk reactions or bad landlords rushing tenants out. In most cases, they are people worried about arrears, worried about being tied into long tenancies, and worried about whether they will be able to regain possession in a reasonable timeframe if things go wrong.
As well as legislation, the Budget has added to the strain, with higher tax burdens landing while mortgage costs, compliance requirements and maintenance expenses remain high. More landlords are now sitting down with a calculator and realising that what once felt like a sensible long-term investment is starting to look less attractive. For smaller landlords, and particularly those with mortgages, the margins have all but disappeared.
Enforcement is another issue that keeps coming up. As I said in the Telegraph this month, the prospect of £40,000 fines is making a lot of decent landlords nervous. Most are not trying to dodge the rules, they are worried about getting caught out by paperwork or a technical breach, which, let’s be honest, would not be difficult with the amount landlords are expected to keep up with now. When the penalties feel that severe, even well-intentioned landlords start thinking twice about whether they want to stay in the game.
All of this feeds into falling confidence which means more landlords want to leave. Every landlord who exits removes a home from the rental market. With demand already far outstripping supply, that inevitably pushes rents higher.
As we head towards 2026, the focus will shift from what the legislation looks like to how it is implemented. Fixing the courts, providing clarity on how the new rules will work in practice and ensuring enforcement is fair and proportionate are absolutely critical. At the same time, landlords who want to stay in the sector need to get informed, understand the changes and prepare properly. The only way to be a landlord in 2026 will be to treat it as a business, not a hobby.
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