Labour’s damaged the rental market says large majority of landlords

Almost seven in 10 landlords think the Labour government has had a negative impact on the rental market in the past 12 months. Just 4% believe Sir Kier Starmer’s administration has made a positive impact. 

That’s according to Simply Business, which says rising costs and the Renters Rights Bill are the top challenges for landlords in 2025.

The RRB brings the biggest changes to renting in decades. With parts of the bill expected to be introduced during 2026, the firm asked landlords which of the 12 key measures they’re most concerned about: 

1. Banning Section 21 evictions (38%)
2. Giving tenants the right to keep pets (14%) 
3. Replacing fixed-term assured tenancies with periodic tenancies (13%)
4. Limiting rent increases (8%)
5. Ending blanket bans on tenants on benefits or with children (7%)
6. Strengthening local authority enforcement (2%)
7. Strengthening Rent Repayment Orders (2%) 
8. Extending the Decent Homes Standard to private rentals (2%)
9. Introducing a Private Rented Sector Database (2%)
10. Introducing a landlord ombudsman (1%)
11. Extending Awaab’s Law to private rentals (1%)
12. Banning rental property bidding wars (0%) 

The banning of S21 evictions is by far landlords’ biggest concern, despite 71% of them saying they’ve never used such an eviction.  Perhaps surprisingly, 10% of landlords said they’re not concerned about the impact of the RRB.

When Simply Business asked landlords how they plan to respond to the limit on rent increases, they said: 

• I haven’t increased rent on any of their properties in the last 12 months – 34% 
• I’ve increased rent, but only for new tenants – 20%
• I’ve increased rent for all tenants but was willing to negotiate – 34%

This means over half of landlords (54%) haven’t raised their rent for existing tenants in the past 12 months. 

Looking at the larger picture, 78% of landlords are concerned about the future of the rental market  But the response to whether or not a rental property was a still a worthwhile investment was mixed: 

• Yes – 39%
• No – 34%
• Not sure – 26%

Simply Business UK chief executiveJulie Fisher says: “Many landlords use their property as a stable financial investment whilst also providing valuable housing for tenants. Although there are clear challenges, 39% believe a rental property is still a worthwhile investment.

“Despite their concerns for the future, most landlords remain steadfast in their commitment to letting their property. In the past 12 months, only 13% of landlords have sold a rental property and almost two thirds don’t plan on selling (64%) in the next year. 

“Insuring more than 300,000 landlords allows us to gain first-hand insight into the integral role they play in the housing market. But with the biggest changes to tenancy law in a generation almost here, it’s more important than ever to understand their challenges and perspective.”

This article is taken from Landlord Today