Last Updated: December 16, 2025
With the Renters’ Rights Act coming into force, many landlords are asking the same question: is it time to sell up or keep renting out my property?
The abolition of Section 21, the expansion of tenant rights, and tougher compliance rules are undeniably changing the landscape. Small and accidental landlords in particular are feeling the pressure. However, before making a decision that’s hard to reverse, it’s worth taking a step back and looking at the full picture.
Recent data shows a sharp shift in the market. Around 35% of landlords have sold or attempted to sell a property in the last 12 months, citing increasing regulation and cost. Yet, at the same time, tenant demand remains high.
According to NRLA figures, there are now an average of 21 applicants for every available rental property in England. That’s a severe shortage of homes to rent, and it’s driving rents upwards across much of the country. Why not check for yourself here: https://homelet.co.uk/homelet-rental-index
For landlords who stay the course, that imbalance presents an opportunity. Well-managed rental properties are letting quickly, at higher rents, and with fewer void periods. Even modest property value growth of 1–2% a year compounds over time, meaning landlords who remain in the market continue to build equity alongside income.
Selling can look appealing. You release capital, escape future regulation, and avoid the hassle of tenants, maintenance, and compliance.
But it’s not without its downsides. Between estate agent fees, solicitor costs, and capital gains tax, you can easily lose 10–12% of the sale value. That’s before considering the income and capital growth you forfeit once you’ve sold.
And let’s be honest, getting back into the market later won’t be easy. Higher mortgage rates, stricter affordability tests, and limited stock make re-entry costly. Selling might solve a short-term headache, but it closes off long-term opportunity.
Holding on to your rental may feel more complex under the new regime, but for most small landlords, it remains the smarter financial move.
Average gross rental yields sit at around 6%, and rents are still climbing due to the supply shortage. Even after costs, that’s a strong return compared to what you’d earn from investing sale proceeds in lower-yield alternatives.
Crucially, by continuing to let, you maintain ownership of a tangible asset that tends to perform well against inflation and can be leveraged over time. Property remains one of the most resilient and tax-efficient investment vehicles when managed correctly.
Of course, the Renters’ Rights Act does add layers of legal responsibility; tighter housing standards, expanded notice periods, and new eviction grounds. However, these challenges aren’t insurmountable. They just require a more professional, legally informed, approach to letting.
This is where many landlords go wrong. They try to handle legal and compliance issues alone. That’s precisely what turns an income stream into a liability.
At Legal for Lettings, we help landlords adapt to the new legal environment with confidence. Our fixed-fee services cover possession proceedings, arrears recovery, and compliance advice, so when things go wrong, you’re not navigating it blind.
Whether it’s serving a Section 8 notice, recovering rent arrears, or defending against a tenant claim, having a legal specialist in your corner changes everything. It means your legal obligations are handled properly, and your income is protected.
The Renters’ Rights Act isn’t intended to drive good landlords out of the market. It’s intended to raise standards. Those who stay, and operate professionally, will benefit from less competition, higher demand, and more reliable tenancies.
If you’re done with property altogether, selling makes sense. But if your goal is steady, long-term income and asset growth, continuing to let is still the better option, provided you’re equipped for the new legal landscape.
Regulation doesn’t have to be the end of private renting. With the right legal partner, it can be the start of doing it better, safer, and more profitably.
Contact Legal for Lettings for fixed-fee legal services covering eviction, arrears recovery, and compliance.
This article was originally written for the NRLA, you can view here: visit the NRLA
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