The UK’s rental market faces an uncertain future as landlords struggle to navigate an onslaught of confusing legislation and soaring costs according to a new report from landlord insurance provider, Simply Business.

To produce the report, the company surveyed 2,000 landlords. Almost three-quarters think the new Government will have a negative impact on the buy-to-let market. Half emphasised that they think that the result will be ‘very negative’.

Two thirds identified constantly changing and confusing government legislation as their biggest challenge. This, says Simply Business, marks a notable increase from previous years, reflecting growing frustration within the sector and laying down the gauntlet for the new Government.

Bleak backdrop

The company adds: “Despite a bleak backdrop, rental demand remains high, and this important sector shows its resilience once again. Although only 41% of landlords say they think letting a property is a worthwhile investment, 62% say they don’t plan to sell in the next 12 months.”

When it comes to the Renters’ Rights Bill, although the majority welcome attempts to drive up standards, more than two-thirds (69%) fear evictions will be more expensive and time-consuming, with 62% saying they expect the removal of Section 21 will encourage landlords to sell up.

Rising costs are another serious concern, with 38% of landlords reporting they consider them to be the biggest threat. Over a third (35%) say their monthly mortgage repayments have increased, up from 31% in 2023 and 10% have seen monthly repayments go up by between £500 and £1,000.

The Government has some work to do to regain the trust of landlords.”

And the new minimum Energy Performance Certificate (EPC) regulations, they say, will not help, with around half of landlords needing to make improvements to reach an EPC rating of C and over a third (34%) reporting they will have to spend up to £10,000 to do so.

Bea Montoya, Chief Operating Officer at Simply Business UK says: “The Government has some work to do to regain the trust of landlords. Winning this back will mean a concerted commitment to clarity around impending legislation, and as much support as possible to make these changes, in the forms of schemes and grants.

“Landlords are a vital part of the health and stability of the UK housing market and must be treated as such to ensure we can create an environment that serves both landlords and tenants.”