More than 700 rental homes a day are being listed for sale across Britain as the Renters Rights Act takes effect, exposing a major legal shift that is already reshaping the housing market.
The removal of Section 21 “no-fault” evictions means landlords can no longer regain possession of their property without proving a legal ground, and that change is prompting many to reassess whether staying in the rental sector is still viable.
The answer to the key legal question is clear. Landlords can still evict tenants in the UK, but only if they meet stricter statutory grounds and follow a formal legal process that can involve delay, cost, and uncertainty. If those conditions are not met, landlords may struggle to recover possession at all, particularly where tenants challenge eviction through the courts.
That shift significantly increases legal exposure compared to the previous system, where Section 21 allowed possession without needing to establish fault.
Research from Savills shows that around 254,000 buy-to-let properties were put on the market in the past year, equating to nearly 700 homes a day. This increase coincides directly with the introduction of tenant-focused reforms, alongside rising mortgage costs and the prospect of stricter energy efficiency regulations. When combined, these factors are forcing landlords to weigh not only financial returns but also legal risk and operational complexity.
The legal mechanism at the centre of this shift is straightforward but consequential. Without Section 21, landlords must now rely on defined statutory grounds for possession, such as rent arrears or breach of tenancy terms, and in contested cases must secure a court order. This introduces a layer of procedural risk that did not previously exist at scale.
Timelines can extend, outcomes become less predictable, and the ability to act quickly in response to problem tenancies is reduced. For landlords with debt exposure or tight margins, that uncertainty materially changes the risk profile of holding rental property.
At the same time, the move away from fixed-term tenancies to rolling agreements removes a degree of contractual certainty that landlords previously relied on. Instead of clear break points, tenancies continue indefinitely unless legally terminated, reinforcing the importance of compliance and legal process. This change, while designed to strengthen tenant security, reduces flexibility for landlords and adds another factor to the decision to exit the market.
Legal Protection vs Market Consequence
Tenant advocacy groups such as Generation Rent have welcomed the reforms, particularly the abolition of Section 21, arguing that it addresses a long-standing imbalance and gives renters greater confidence to assert their rights. From a legal perspective, tenants now have stronger protection against eviction and greater ability to challenge landlords where standards are not met.
However, the wider market consequence introduces a different kind of risk. If landlords continue to sell at the current pace and fewer new investors replace them, the supply of rental housing will tighten.
A reduction in available properties creates upward pressure on rents, meaning tenants may face higher costs even as their legal position improves. This creates a structural tension between protection and availability that will define the next phase of the UK rental market.
The data suggests this is not a temporary adjustment but a longer-term shift. A relatively small proportion of properties leaving the rental sector are being acquired by other landlords, and those that are tend to be purchased by larger, more professional operators.
This indicates a consolidation trend, with smaller landlords exiting and institutional or portfolio landlords expanding their share of the market.
The result is a redistribution of risk rather than its removal. Landlords face increased legal exposure and reduced flexibility, while tenants gain stronger rights but may encounter higher rents and fewer options. The legal framework is therefore not only changing individual relationships between landlords and tenants but also reshaping the structure of the market itself.