The Daily Telegraph has published and article commencing with the statement “This is going to be a bleak year for landlords and the rental sector”

The article can be read here (subscription may be necessary) and warns that landlords face a triple threat in 2026 as sweeping new regulation, rising costs and expanded council enforcement powers converge, prompting warnings of a deepening crisis in the private rented sector.

At the centre is Labour’s Renters’ Rights Act, which comes into force from 1 May 2026 and abolishes Section 21 “no-fault” evictions. Landlords will now be forced to rely on the courts to regain possession, raising fears of lengthy delays, lost rent and worsening arrears. Industry figures warn that repossession could take 12 to 16 months, at a time when the court system is already overstretched.

The Act introduces a raft of additional changes:

• Fixed-term tenancies replaced by periodic tenancies

• Rent increases limited to once a year via Section 13

• Rent repayment orders doubled to 24 months

• At least 15 new offences, with civil penalties of up to £40,000

• A new Private Rented Sector Database, requiring mandatory registration and fees

At the same time, councils are being given greater scope – and incentive – to enforce. Selective licensing schemes are expanding rapidly, with some councils charging close to £1,000 per property, and fines retained locally. Critics argue this turns enforcement into a revenue-raising exercise, with small and self-managed landlords most exposed to inadvertent breaches.

Costs are also rising elsewhere. Awaab’s Law is being extended in 2026 to cover a broader range of hazards, while a 2 percentage point increase in tax on property income from 2027 is already influencing decisions to exit the sector. Rightmove data suggests one in three landlords is considering selling, a trend expected to accelerate.

The likely consequences are fewer rental homes, higher rents and a shift away from small and “accidental” landlords towards larger, more commercially driven operators. As one industry expert puts it, 2026 risks becoming a “race to the bottom”, with both tenants and responsible landlords losing out as supply continues to shrink.