The housing minister has said that England’s private rented sector remains broadly stable, despite growing concerns that recent policy changes are encouraging some landlords to exit the market.
In a written parliamentary response, Housing Minister Matthew Pennycook stated that the private rented sector (PRS) “remains stable” and confirmed that the government will continue to monitor developments following the introduction of the Renters’ Rights Act.
His comments come as ministers begin a new data monitoring programme aimed at assessing how the reforms are affecting the rental market in practice. The initiative is intended to provide a clearer picture of supply and demand trends in the wake of recent legislative changes.
Government says the rental sector has not changed significantly
The response followed a question from Conservative MP Andrew Snowden, who asked how many landlords had left the private rented sector since July 2024.
Mr Pennycook said there had been no substantial change in the overall size of the PRS and added that the government had not carried out a specific assessment of the impact of the abolition of Section 21 “no fault” evictions on rental supply.
He referred to the latest English Housing Survey for 2024–2025, which indicates that the private rented sector continues to account for around 19% of households in England.
The minister also highlighted Ministry of Justice data showing that accelerated possession claims in England fell by 12% between January and March 2026 compared with the same period the previous year.
According to Mr Pennycook, the government is continuing to monitor trends in the rental market and is undertaking a wider evaluation of the Renters’ Rights Act. Formal assessment reports are expected to be published two and five years after the legislation comes into force.
Research points to potential landlord exits
Despite the government’s position, other industry data suggests there may be more significant movement occurring within the sector.
Research from Pepper Money estimates that around 220,000 households could leave the private rented sector in England by the end of 2026. Of these, more than 65,000 exits are directly linked to the impact of the Renters’ Rights Act, which came into effect on 1 May.
This suggests that while the overall size of the sector may appear stable in official figures, underlying churn and planned exits could be more substantial than the headline data implies.
Landlord confidence under pressure
Further findings from property consultancy Allsop indicate that many landlords are reconsidering their long-term involvement in the rental market.
According to the research, two in five landlords say they are unlikely to continue letting properties following the implementation of the Renters’ Rights Act. This rises to 41% who are either unlikely or very unlikely to remain active in the sector.
The trend is even more pronounced among smaller landlords. Among those with just one rental property, 51% say they are unlikely to continue letting, highlighting the greater sensitivity of smaller investors to regulatory change.
The removal of Section 21 repossession powers is cited as a key factor influencing landlord sentiment, alongside wider concerns about regulation and long-term returns.
A mixed picture for the private rented sector
Taken together, the data presents a divided view of the UK rental market.
On one hand, government figures suggest that the private rented sector has remained steady in size, supported by housing survey data showing no significant structural shift in tenure. On the other hand, private research points to a growing number of landlords planning to reduce their portfolios or leave the sector entirely.
This contrast highlights the difficulty in measuring real-time change in the rental market, where official statistics often lag behind investor sentiment and behavioural shifts.
What happens next
As the Renters’ Rights Act continues to take effect, both policymakers and industry participants are expected to closely monitor how landlord behaviour evolves.
Future government evaluations, alongside ongoing market research, will be key in determining whether current trends represent a short-term adjustment or a longer-term reduction in rental supply.
For now, the debate remains centred on interpretation of the data — with official figures suggesting stability, while industry sentiment points to potential pressure building beneath the surface of the private rented sector.
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