Landlords are grappling with a challenging mix of new legislation and rising costs, according to a report from Simply Business. The survey, which included nearly 2,000 landlords, highlights significant concerns about the future of the buy-to-let market. A notable 71% of landlords believe that the new Labour government will negatively impact the sector, with over half describing the outlook as “very negative.”

The primary issue for many landlords (69%) is the constantly shifting and often confusing government legislation. This has created mounting frustration, which, according to Simply Business, presents a significant challenge for the government moving forward. Despite these concerns, 62% of landlords have no plans to sell their properties within the next year, reflecting ongoing rental demand, even though only 41% of landlords still view property letting as a worthwhile investment.

The Renters’ Rights Bill has also created anxiety. While many landlords welcome the increased standards it brings to the market, 69% are worried that necessary evictions will become more costly and time-consuming. Furthermore, 62% of landlords fear that the abolition of Section 21, which allows no-fault evictions, could lead to a sell-off of rental properties.

Rising costs are another significant concern, with 38% of landlords identifying them as the biggest threat to the market. Mortgage costs are rising too, with 35% of landlords seeing an increase in monthly payments, some by as much as £500 to £1,000. These costs are compounded by the new Energy Performance Certificate (EPC) regulations, which require properties to meet a minimum rating of C. Half of the surveyed landlords need to make upgrades, with 34% expecting to spend up to £10,000 to comply.

Bea Montoya, COO of Simply Business, emphasized that while landlords have shown resilience, many are struggling under the weight of these new challenges. She called for more clarity from the government on impending legislation and for financial support, such as grants and schemes, to help landlords make necessary changes. Montoya stressed that landlords play a crucial role in the UK housing market, and ensuring they are supported is essential for maintaining stability for both landlords and tenants.