Between the Renters Reform Act, licensing chaos, and court delays — 2026 may be the year the small landlord calls it quits.
The Year Landlords Break — How the System Is Forcing Out the Private Sector
2026 may be the year small landlords walk away for good. From licensing penalties to the Renters Reform Act, here’s why the private rented sector is reaching its breaking point.
Let’s not sugar-coat it — the outlook for private landlords in 2026 is bleak.
The Renters Reform Act has passed, councils are tightening enforcement powers, and the courts are buckling under pressure. For the first time in over two decades, I’m seeing landlords walk away not because they want to, but because the system has made it impossible to continue.
What’s happening now is not reform. It’s eradication — by regulation, by design, and by political convenience.
The government finally abolished Section 21, removing landlords’ ability to regain possession without proving fault. They promised stronger Section 8 grounds. What we got instead are court-dependent procedures that don’t function and threaten to be harsh on the most vulnerable.
In effect, no landlord ever used Section 21 for “no fault”. No landlord wants to pay for an eviction of a perfectly good tenant, only to go and try and find another. The tenants evicted via Section 21 often have arrears and/or are misusing the property.
Under current law, a tenant evicted under Section 21 has the protection of the local authority, who come under a statutory duty to house them. Some landlords choose not to evict under Section 8 as they recognise tenants may be struggling financially — this enables tenants to access housing support from the council or a social landlord. But when tenants are evicted for fault-based reasons, that protection disappears. So much for protecting vulnerable renters.
I’ve acted in countless possession claims — I know how slow and erratic the courts are. Landlords are waiting six to nine months, even on mandatory rent arrears grounds. And if a tenant plays the system, it can take far longer.
The state will also fund the tenant’s defence via the legal aid system. Costs can be claimed from the landlord at private rates, despite the tenant holding no liability for any costs incurred. The Legal Aid Agency may pay out an average of £300–£600 for a defence, yet unscrupulous legal professionals will submit inflated cost bills of £3,000–£12,000. Should the landlord win? Expect a costs award of little more than the court issue fee.
The truth is: you no longer control your property. A tenant does — and it’s only getting worse.
In Liverpool and Wirral, selective licensing schemes are expanding faster than ever, while compliance standards become a moving target.
Enforcement officers have been given more powers than ever, and unlike you, they’re not personally liable for the damage they cause.
Letting agents are leaving the industry. Long-term landlords are selling up. And tenants? They’re the ones facing higher rents and less choice.
This year brings the next wave of compliance headaches:
We’re not far from a national register where you’ll need permission to let your own home.
This isn’t accidental. The goal is clear: make it so painful for small landlords that only corporate entities remain. They’ll absorb the costs, lobby for loopholes, and extract value — while local authorities cheer from the sidelines.
But when small landlords go, so do:
What remains is a rigid, faceless system where nobody wins — not even the tenants it claims to protect.
In Merseyside, we’ve seen landlords quit halfway through refurbishment projects, unable to get compliant in time or unwilling to continue absorbing ever‑increasing risk. Others now have properties sitting vacant because they are no longer prepared to be exposed to tenant‑related faults that can trigger enforcement action, fines, or prolonged legal battles.
We’ve helped landlords recover possession where the system appeared designed to trap them. But it’s getting harder, slower, and more expensive with every passing month.
If you're a landlord still in this game, you need more than a rent collection service. You need a support network, legal awareness, and a compliance strategy that anticipates problems before they arise.
That’s what we provide.
2026 isn’t just another year. It’s a fork in the road.
You can either tighten up, wise up, and adapt — or be forced out by a system designed to bleed you dry.
FSC Property is here for landlords who want to keep their investments protected and their stress levels down. We’re not just managing rent — we’re managing risk.
📞 Need help understanding what the Renters Reform Act means for your properties?
📧 Email us at info@fscproperty.com or visit our Contact Us page.
