In a recent published article, the Telegraph warns that New Zealand and Portugal are rowing back on tough landlord policies after seeing buy-to-let investors exit the market – a move experts say offers a stark warning for the UK as Labour pushes ahead with its Renters’ Rights Act.

In New Zealand, the government has reversed a five-year ban on no-fault evictions, reintroducing the ability for landlords to end tenancies with notice after a sharp fall in rental supply. Ministers acknowledged that restrictions introduced under Jacinda Ardern’s Labour government had driven landlords out, worsening shortages and pushing up rents.

Portugal has taken a different tack, proposing significant tax cuts for landlords to encourage investment back into the rental sector. Plans under consultation include reducing tax on rental income to 10%, offering 0% tax on rents set well below local market levels, and even 5% tax rates for very long-term leases. The shift follows evidence that punitive regulation and taxation had backfired.

By contrast, the UK is moving in the opposite direction. From 1 May 2026, Labour’s Renters’ Rights Act will ban Section 21 no-fault evictions, with landlords potentially facing months-long waits to regain possession through the courts. This comes as supply is already shrinking: rental listings are 23% lower than in 2019, while London rents have hit a record £2,736 per month.

Industry figures warn the UK risks repeating the same mistakes now being corrected elsewhere. Alongside the loss of Section 21, landlords face higher taxes, tighter pet rules without compensation, and expanding enforcement powers for councils. A 2 percentage point rise in property income tax from 2027 has further undermined confidence.

Experts argue the international lesson is clear: penalising landlords reduces supply and pushes rents higher. While New Zealand and Portugal are now trying to rebuild confidence through flexibility and incentives, critics warn the UK is entrenching policies that could accelerate landlord exit – deepening the housing shortage and ultimately harming tenants as well as landlords.