Renters’ reform targets rogue landlords but risks shrinking supply

Reforms to the private rented sector aim to tackle poor conditions and give tenants greater security, but they may also have unintended consequences. With rising costs and increasing regulation already pushing some landlords out of the market, there are growing concerns that well-run properties could be lost alongside the worst offenders. The challenge now is ensuring reform improves standards without reducing supply or driving up rents.

Most landlords do the right thing, but a minority have driven reform. The risk now is losing the very landlords tenants rely on.

There is a simple truth at the heart of the Renters’ Rights reforms.

They were not designed for the majority of landlords. They were designed for a minority whose behaviour has, over time, created a level of risk and insecurity that policymakers could no longer ignore.

The difficulty is that legislation rarely lands neatly. When you regulate a whole sector, even with the best of intentions, you change behaviour across the board, including the behaviour of those who were never the problem.

Before we consider what happens next, it’s worth being clear about what the reforms were trying to fix.

According to the government’s English Housing Survey, the private rented sector now contains around 4.7 million households, roughly 19 per cent of all households in England. Most tenancies pass without dispute. But the official data behind reform tells a consistent story of underlying problems.

The same survey shows that 21 per cent of privately rented homes fail the Decent Homes Standard, and around one in eight contain serious health and safety hazards, risks such as damp, mould, fire danger or unsafe electrics.

Photo by Jakub Żerdzicki on Unsplash

At the same time, tenants have often felt unable to complain. Surveys cited during the reform process suggest that around one in five renters avoid reporting problems because they fear eviction. That fear matters when tens of thousands of households each year still face Section 21 “no-fault” eviction notices.

Overlay that with weak enforcement, local authorities often lack the resources to act, and the picture becomes clearer. Advice charities such as Citizens Advice and Shelter handle tens of thousands of private renting cases annually, covering disrepair, illegal eviction and unsafe conditions.

There is no single official statistic for so-called “rogue landlords”. Instead, the case for reform rests on a consistent pattern: poor housing conditions, fear of retaliation and limited enforcement.

Even if only a minority of landlords fall short, in a sector of this size that still affects hundreds of thousands of households.

That is what the legislation is trying to address:

Ending no-fault evictions to give tenants confidence to complain; creating a landlord register to improve transparency; introducing an ombudsman to resolve disputes more quickly; strengthening enforcement against repeat offenders.

Taken together, the reforms are intended to rebalance a system where tenants have often carried most of the risk.

But there is another side to this story.

The private rented sector is already under pressure. Costs have risen. Regulation has tightened. Returns, particularly for smaller landlords, have been squeezed.

HMRC data shows there were around 2.86 million individual landlords declaring rental income in 2023–24, but the longer-term trend suggests a gradual reduction in smaller landlords.

Survey evidence from the National Residential Landlords Association indicates that around 26 per cent of landlords sold property during 2024, while only a small proportion expanded their portfolios. Separate research suggests around a third plan to reduce the number of homes they let.

At the same time, Propertymark reports that demand continues to outstrip supply, with multiple tenants often competing for each available property.

That matters, because affordability is already stretched. Official figures show private renters spend an average of around 34 per cent of income on housing, rising significantly higher for lower-income households and in London.

If good landlords leave, the immediate effect is not better housing. It is fewer homes, rising rents and reduced choice.

However, focusing only on landlord behaviour tells only part of the story.

As with landlords, the vast majority of tenants meet their obligations. English Housing Survey data shows that around 95 per cent of private renters were not in arrears over the past year, with only around 2 per cent currently behind on rent.

For the minority where things do go wrong, the consequences can be serious. Ministry of Justice data shows tens of thousands of possession claims each year under Section 8, covering rent arrears, anti-social behaviour and tenancy breaches.

Government survey data also shows that 42 per cent of landlords who sought possession cited rent arrears as the primary reason.

Disputes over damage and unpaid costs are also a persistent issue. Tenancy deposit schemes handle tens of thousands of disputes annually, many involving claims for damage, cleaning or unpaid rent.

For smaller landlords, often with just one property, these risks are not theoretical. They can be financially decisive.

This is the balance policymakers must now manage.

Few would defend unsafe housing or exploitative practices. Reform was always going to happen, but if responsible landlords leave, alongside the minority causing harm to tenants, the result will not be a fairer system. It will be a tighter one.

Fewer homes. Higher rents. Less choice.

The answer is not to step back from reform, but to implement it with precision.

That means targeting enforcement where it is needed most, ensuring the court system can deal swiftly with genuine disputes, and giving responsible landlords the confidence to remain in the market.

This is not a story of landlords versus tenants.

It is a story of a system under strain.

Get it right, and we improve conditions without damaging supply.

Get it wrong, and we risk losing the very people who keep the sector functioning.