This comes as the UK Government works on tougher legislation for buy-to-let investors.

The Prime Minister has been urged to learn a lesson from events in New Zealand and Portugal, or face creating a crisis in the UK. Both countries have been forced to relax laws on landlords following a mass exodus.

New Zealand has reversed a ban on no-fault evictions, and Portugal is planning to reduce income tax for landlords after tougher restrictions backfired. This comes after the UK Government works on tougher legislation for buy-to-let investors. Experts have warned against this, saying it could drive up rents, push landlords out of the market, and exacerbate a housing crisis. The Renters’ Rights Act will come into force on May 1, banning no-fault evictions. Landlords have said they are considering leaving the sector, with 22% of homes for sale in July being former rentals, according to analytics firm TwentyCi. This is an increase from 15.6% in July 2023. Ben Beadle, of the NRLA, told the Telegraph: “This [Renters Rights] is a disaster waiting to happen.

 

Man Puts Up a For Rent Sign in Front of House

Landlords have spoken out against the Renters’ Rights Act (Image: Getty)

“If landlords are already facing an almost eight-month wait to legally take possession of their homes at a time when the number of claims is falling, then what can we expect when the inevitable avalanche of claims drops post-Renters’ Rights Act?”

Paul Shamplina, founder of the Landlord Action campaign group, said: “When you look at what New Zealand and Portugal are doing, it is hard not to ask why the UK is heading in the opposite direction.

“In the UK, the weight of regulation is such that for some landlords the balance has clearly tipped too far. We seem to be doing everything possible to make landlords feel unwanted, while still expecting them to house millions of tenants.

“If landlords lose confidence and leave, the market simply cannot function. Other countries appear to understand this. Unless the UK does too, we risk pushing more landlords out and making the housing shortage even worse, which will negatively impact tenants.”

New Zealand banned no-fault evictions in 2020, resulting and a decline in rental availability levels. Just four years later, the government announced changes to the legislation that came into effect in January 2025. In Portugal, the government is planning a reduction in income tax on residential rental income from up to 48% to 10%.