It’s not just landlords who appear to be forced out of the private rental sector by the threat of the Renters Rights Bill.

Lettings agency Spicerhaart claims there’s been a surge in the number of small independent lettings agencies seeking details of how to sell up or be taken over by corporate firms, because of the reduction in landlord clients. 

Joel Osbourne, Spicerhaart’s new acquisitions director, says: “Many smaller agencies simply won’t have the resources to manage the operational, legal, and financial implications of such a significant change in legislation – even if the Section 21 ban is postponed.

“A recurring concern in my conversations with business owners is that uncertainty surrounding the Bill – particularly over eviction processes and rent controls – could still trigger an exodus of landlords, significantly reducing their revenue streams.

“For smaller agencies, this could be devastating, as they lack the financial reserves, diverse portfolios, and operational capacity that help larger agencies weather market changes.”

A government impact assessment estimates that fall-out from the Bill – which is due to become law this summer – will cost lettings agencies some £391.7m over the next decade, mostly because of the reduced number of landlord clients. 

Osbourne says: “The financial pressure is mounting, and for many independent agencies already operating on tight margins, these changes present real challenges. With landlords reassessing their portfolios, agency owners are having to think carefully about their next steps. I’ve only been in post for just over a month, but my phone is constantly ringing, and my diary is rapidly filling up – a clear sign that business owners are proactively exploring their options.”