Labour's Rental Rights Bill collapses market, causes price rises as Reeves blames Iran War
700 rentals a day are being put up for sale as landlords leave due to extra costs, reducing stock, sending prices soaring but Reeves says it's all due to the Iran war and touts rent controls
New data confirms what many in the property sector have long warned about. Landlords are selling up in significant numbers as Labour’s Renters’ Rights Act, which came into force on 1 May, removes no-fault evictions and adds layers of regulation and risk to the private rental sector.
Figures show around 700 rental homes hitting the market each day, with projections of up to 220,000 properties leaving the sector by the end of 2026. Research from Pepper Money and others highlights that only about 30 percent of sold rental properties are bought by other landlords, meaning the majority shift to owner-occupiers and reduce overall rental supply.
The Scale of the Sell-Off
In the first three months of 2026, over 70,000 new sales instructions were for properties previously in the rental market, up sharply from previous quarters.
The private rented sector has already seen its value drop by billions, with supply at historic lows and average rents climbing.
Landlords in areas like the South East and North East are particularly active in exiting, driven by years of tax changes, compliance costs, and now this new Act.
This is not abstract. It directly affects tenants facing higher rents and fewer options, and it stems from policy that treats landlords as the problem rather than providers of essential housing.
Challenging the Narrative of Tenant Protection
The government presents the Renters’ Rights Act as a major win for fairness, ending Section 21 no-fault evictions and giving tenants more security. In practice, it tilts the balance too far. Landlords now need specific legal grounds to regain possession, face longer notice periods, and deal with increased risk of difficult tenants staying put while costs mount.
Industry experts, and reports in the Telegraph and Express, have correctly flagged this as counterproductive. It follows a decade of hits including restrictions on mortgage interest relief and stamp duty surcharges. Many smaller or accidental landlords are simply getting out, often selling to first-time buyers. While that may sound positive on the surface, it shrinks the rental pool at a time when demand remains high.
The result is predictable. Reduced supply pushes rents higher, exactly as landlords and agents in the South West and elsewhere have warned. Good landlords who maintain properties responsibly are penalised alongside any bad actors. This is classic government overreach, punishing enterprise and investment instead of targeting abuse through existing laws. Other countries that tried similar heavy handed approaches have had to row back after seeing supply collapse.
Reeves Floats Rent Freeze While Gaslighting on Causes
Rachel Reeves has been reported as considering a one-year rent freeze on private sector homes, framed as a response to rising costs from the Iran conflict. This claim is ridiculous and gaslighting. It is a clear attempt to deflect blame from Labour’s own policies onto international events.
The real pressure on rents comes from the huge exodus of properties triggered by the Renters’ Rights Act itself, combined with years of added costs and red tape on landlords. These reforms have accelerated sales, tightened supply, and driven prices up through basic economics. Blaming distant geopolitical issues while ignoring the domestic damage is gaslighting the public and tenants alike. Further interventions like freezes would only deter remaining landlords, worsening shortages and long-term affordability. Housing Secretary Steve Reed has since ruled out such a freeze, but the suggestion reveals the direction of Labour thinking.
Labour introduces the bill against the advise from professionals which increases landlord costs, paperwork and risks. It’s resulted in mass sell offs, reduced rental stock, increase prices, then Reeves gaslights us blaming the Iran war then touts rental controls to try and fix their utter mess. They really are utterly incompetent.
Complete Incompetence Needs Removing
Britain does not need more rules that drive responsible providers from the market and inflate costs for everyone else. Restore Britain offers a better path by ending the vindictive war on landlords, making renting a sustainable option once again. Policies that slash excessive regulation, support home ownership through sensible planning reform, and prioritise British families in housing allocation would restore balance. Rupert Lowe has highlighted how home ownership has become far harder for younger generations and the need to overhaul rules that trap people and deter supply. Reversing this exodus through pro-investment, common sense measures is essential to fix the rental crisis Labour’s approach is worsening.