Landlords are rushing to sell up ahead of the Renters’ Rights reforms coming into force this week with a spike in last-minute possession claims and Section 21 notices.
Thackray Williams said its litigation team has seen a wave of instructions from landlords looking to exit the private rented sector before the new rules take effect on 1 May.
The firm said landlords are seeking possession of properties across both individual units and entire buy-to-let portfolios, as the abolition of Section 21 ‘no fault’ evictions looms.
The surge highlights mounting pressure within the rental market, with agents already warning that the reforms risk accelerating landlord exits and tightening supply.
THE FINAL STRAW
Mustafa Sidki (main picture, inset), Contentious Construction Litigation Partner at Thackray Williams, says: “Our clients are all saying the same thing: the new liabilities and reduced flexibility being introduced by The Renters’ Rights Act 2025 from 1 May is the final straw in making their property investments no longer commercially or practically viable, particularly in a challenging economic climate and with other changes also in the pipeline.”
From Friday, the Renters’ Rights Act 2025 will introduce sweeping changes, including the abolition of Section 21, the end of Assured Shorthold Tenancies and a shift to periodic tenancies, alongside tighter rules on rent increases and new tenant protections.
Sidki adds: “The changes being introduced by The Renters’ Rights Act this Friday mean it will take longer and cost more for a landlord to regain possession of a rental property. This reduced flexibility is causing many landlords to rethink their investment strategies, especially as other factors mean they are facing reduced – and even negative cashflow – while also facing increased admin and responsibilities.”
KNOCK-ON EFFECTS
The legal firm warns that the increase in landlord disposals could have knock-on effects for the wider housing market.
Claire Josef, Conveyancing Partner at Thackray Williams, says: “We’re anticipating increased instructions for our conveyancing team as these landlords put their properties on the market as soon as they are able, which in turn could negatively impact property prices, particularly in areas that have traditionally had a strong rental sector.”
Alongside regulatory change, landlords are facing a convergence of financial pressures, including higher mortgage costs, rising maintenance and insurance bills, and additional tax burdens.
Sidki points to the long-term impact of Section 24 mortgage interest relief changes, alongside a new 2% tax on property income announced in the November 2025 Budget, as well as refinancing rates now sitting closer to 5–6% as ultra-low fixed deals expire.
MAKING TAX DIGITAL
The introduction of Making Tax Digital for landlords earlier this month is also adding to administrative demands, requiring quarterly income reporting.
At the same time, upcoming requirements to improve rental properties to EPC C by 2030 under the Decent Homes Standard are adding further cost pressure.
While some landlords had planned ahead, Thackray Williams says it is now seeing a significant number of last-minute applications to serve Section 21 notices before the deadline.
Under transitional provisions, valid Section 21 notices served before 1 May will remain enforceable, allowing landlords to continue possession proceedings under the existing regime.
However, once the new rules take effect, landlords will be required to rely on revised Section 8 grounds, marking a fundamental shift in how possession is managed across the private rented sector.
With the deadline now imminent, the firm said many landlords have concluded that the balance of risk and return no longer stacks up – prompting a rush to exit before the window closes.
