Why Are So Many UK Landlords Planning to Leave the PRS?

The Private Rented Sector (PRS) is at breaking point. Recent surveys reveal that 39% of landlords are considering selling up within the next 12 months. The reason? A perfect storm of new legislation, rising costs, and mounting pressures that are making buy-to-let less attractive than ever before.

We take a look at why so many landlords are ready to exit — and what it means for those still holding on.


1. Loss of Control Over Tenancies

  • The end of Section 21 will leave landlords without a reliable way to regain possession quickly.
  • Eviction routes under the Renters’ Rights Bill are set to be slower, more expensive, and uncertain.
  • 56% of landlords fear being stuck with tenants who don’t pay rent or cause problems for much longer.

Implication: Flexibility is gone, risks are higher, and confidence is collapsing.


2. Costly New Compliance Burdens

  • By 2030, all rental properties must achieve a minimum EPC rating of C.
    • The projected bill to the sector is £9 billion.
    • 13% of landlords expect to spend £10,000+ per property to comply.
  • New regulations will also require higher property standards, adding further expense.

Implication: Many landlords see this as death by a thousand cuts.


3. Tax & Admin Pressures

  • From April 2026, the Making Tax Digital scheme will require quarterly returns (not annual) for those with combined rental and other income over £50,000.
  • 68% of landlords admit they are unprepared.
  • They expect:
    • Higher accountant fees (41%)
    • More admin (45%)
    • More complexity (35%)

Implication: For small-scale landlords, the burden outweighs the benefit.


4. Profitability Under Threat

  • A cap of one rent increase per year is just the start — landlords fear wider rent controls may follow.
  • Combined with rising mortgage rates, compliance costs, and heavier admin, net yields are being eroded fast.

Implication: Many landlords question if buy-to-let is worth the effort anymore.


5. Uncertainty & Constant Policy Change

  • 76% of landlords believe new regulations won’t improve standards as intended.
  • 21% don’t understand the EPC rules at all.
  • With frequent shifts in housing policy, long-term planning feels impossible.

Implication: Lack of clarity alone is enough to push landlords towards the exit.


6. A Hostile Climate

  • 71% of landlords have never used Section 21.
  • 31% have kept tenants for more than 5 years.
  • Yet the sector is regularly painted as exploitative.

Implication: Good landlords feel unfairly demonised — and many have had enough.


The Bottom Line

Landlords are facing:

  • Less control over their own properties
  • Higher costs from EPC upgrades, new standards, and tax changes
  • Greater risk from weaker eviction powers
  • Shrinking profits as compliance and borrowing costs rise

For many, the sums simply don’t add up. It’s no surprise that almost 4 in 10 landlords are preparing to sell.

When landlords compare investment options to a mortgaged buy-to-let, many find that stocks & shares, ETFs / index funds, and REITs offer similar or slightly lower nominal returns—but with far less hassle, far greater liquidity, and lower ongoing risk – especially as property house price growth has already slowed to little more than inflation and may even shrink.


Time to Act?

If you’re tired of landlord bashing, constant new rules, and shrinking returns, you’re not alone. Thousands of landlords are weighing up their options — and for many, selling sooner rather than later makes sense.

At Landlord Sales Agency, we help landlords exit the market quickly, fairly, and professionally. Whether you want to sell one property or your entire portfolio, we’ll make the process Fast. Fair. Done.