A leading property lawyer has cautioned that small landlords managing just one or two properties could soon find themselves edged out by larger portfolio holders or corporate entities, as the Government presses forward with plans to raise standards in the private rented sector (PRS).
Justin Bates, a barrister at Landmark Chambers, suggests the shift stems from concerns over what the Government views as an “amateur” PRS, which it believes hampers efforts to improve conditions for tenants.
Bates argues that the current Labour administration isn’t fundamentally opposed to landlords but is focused on reshaping a system it sees as flawed.
“This is a Government that sees that the current arrangements don’t work for the majority of people,” he explains. “Labour didn’t promise to regulate the market but…it needed to re-balance the relationship…because it benefits tenants and the wider community – and if that means landlords lose out, then they lose out.”
The forthcoming Renters’ Rights Bill, which includes the abolition of Section 21 ‘no-fault’ evictions, reflects a drive to prioritise homes over assets.
Yet, Bates points to the inclusion of the new Ground 1A possession rule—allowing landlords to reclaim properties to move back in—as evidence of a more balanced approach.
“A really anti-landlord Government wouldn’t have put 1A in – they were quite lucky,” he remarks, noting it offers landlords a practical recourse.
Drawing parallels with Scotland, where similar grounds exist, Bates warns of potential misuse.
He highlights how some Scottish landlords have exploited these provisions to secure vacant possession, only to claim a sale has collapsed before re-letting the property. In England, he expects local authorities to keep a sharp eye on the PRS to curb such practices.
Bates also praises the Government’s subtle approach to rent control, limiting increases to the Section 13 process.
“If a tenant doesn’t agree with a rent increase it will have to go to tribunal and it won’t be backdated,” he says. This, he suggests, might push landlords to negotiate directly with tenants rather than face delays.
“The landlord will think, do I really want to spend three months waiting for a decision or do I say to a tenant, ‘let’s make a deal’? The DWP and Treasury will be pleased because that will slow the growth of the benefits bill.”
Speaking at the Renters’ Rights Bill conference, organised by Landlord Law, Bates underscored how these reforms could reshape the PRS landscape, potentially squeezing out smaller players in favour of those with deeper resources to adapt.
With local authorities poised to scrutinise the sector and tenants gaining leverage, the changes signal a significant pivot in the UK’s property rental market.