Simply Business has released a new report that captures a growing sentiment of uncertainty among UK landlords, highlighting their struggles with rising costs, complex regulations, and new legislative changes. Among the 2,000 landlords surveyed, 71% anticipate a negative impact on the buy-to-let sector from the new government, with over half of these expressing significant concern.

Navigating Complex Legislation
The most prominent challenge for landlords is navigating the “constantly changing and confusing” legislation. Nearly 69% cited these shifts as their primary concern—a noticeable increase from prior years. This frustration is intensified by the anticipated Renters’ Rights Bill, which is expected to increase costs and timelines for evictions, with the removal of Section 21 seen as potentially driving more landlords to exit the market.

Financial Pressures and Rising Costs
With rising costs viewed as a critical threat, 38% of landlords named them as the primary challenge facing the sector. Monthly mortgage payments are up for over a third of landlords, and around 10% are seeing increases of £500 to £1,000. Adding to the strain, new Energy Performance Certificate (EPC) requirements demand costly upgrades—over a third of landlords report they’ll need to spend up to £10,000 to comply with the target of an EPC rating of C by 2030. This challenge is exacerbated by perceived inconsistencies in EPC assessments, leaving landlords frustrated with unpredictable and costly improvements.

A Question of Viability
Despite a challenging environment, many landlords still recognize the resilience of the rental market, with 62% planning to remain in the sector over the next 12 months. However, only 41% still believe that letting properties is a worthwhile investment. Bea Montoya, COO of Simply Business UK, emphasized the critical role landlords play in the housing market and urged the government to provide consistent support through clear legislation, grants, and schemes to help landlords remain viable.

This report underscores the need for policy stability and clarity to regain landlord confidence, ensuring a balanced rental market that works for both landlords and tenants alike.