A new survey reveals that a significant number of small-scale landlords are leaving the private rented sector, primarily due to concerns over the government’s Renters’ Rights Bill. Data from property management software provider Alto, based on a survey of 250 letting agents, shows that 34% of agents have seen a noticeable increase in independent landlords selling their properties.

The survey also found that 93% of agents are worried about losing these clients because of the new legislation. The landlords most affected are those with one or two properties, who often bought them as retirement investments. They are reportedly struggling with a combination of factors, including rising interest rates, tougher energy efficiency regulations, and the new legislative demands, and many feel “demonized.”

Riccardo Iannucci-Dawson, Alto’s chief executive, warns that the exodus of these landlords could lead to reduced tenant choice and higher rents. The company is urging the government to provide clearer guidance on the Bill’s impact. The Renters’ Rights Bill is set to abolish fixed-term tenancies and “no-fault” evictions.