The National Residential Landlords Association (NRLA) has warned that rising costs across mortgages, taxation, and regulatory compliance risk forcing landlords out of the market and exacerbating the rental shortage. Ben Beadle, the NRLA chief executive, framed the issue bluntly: growing taxes, uncertain costs tied to the Renters' Rights Act, and the ongoing housing benefit freeze "will create the perfect storm for tenants." That last phrase matters. Both sides of the tenancy are about to feel pressure.

The numbers show why landlords are concerned. Mortgage costs have risen sharply - landlords now pay an average of £1,100 more annually compared to early March 2026 rates, according to the NRLA. That's a direct hit to yield on any leveraged portfolio. Worse, the tax landscape shifts in April 2027. The government is raising income tax on rental profits by 2 percentage points across all bands. According to the NRLA's assessment (PropertyWire, 31 March 2026), the basic rate moves from 20% to 22%, the higher rate from 40% to 42%, and the additional rate from 45% to 47%. A landlord on the higher rate paying tax on £20,000 annual profit will owe an extra £400 per year.

Overlaid on mortgage and tax pressure is the regulatory wall. The Renters' Rights Act (in England), effective May 2026, abolishes Section 21 (no-fault) evictions and ends fixed-term assured tenancies - all new tenancies will be periodic (rolling monthly) by default. Landlords will no longer be able to end a tenancy without cause - a seismic shift in portfolio flexibility. Beyond that immediate change, the government's energy efficiency standards will require all rental properties to meet a minimum Energy Performance Certificate (EPC) rating by 2030. The NRLA has estimated this compliance could cost £10,000 per property. For a portfolio of ten properties, that's £100,000 in capital expenditure concentrated in a four-year window.

The NRLA's message to ministers is straightforward: without intervention, landlords will exit the market. Fewer landlords means tighter supply, which means higher rents - which harms the very tenants the regulations were designed to protect.

Here's where the story splits into two realities. Yes, these costs are real, and no landlord absorbs them indefinitely. But rent rises aren't automatic. In competitive lettings markets - think London, Manchester, Birmingham - tenant demand is already softening. Void periods are lengthening in many regions. A landlord can raise rent, but if it takes an extra four weeks to let the property, the gross income often falls. The NRLA's warning assumes a straightforward cost-plus model (costs up, rents up), but lettings markets don't work that way. Demand curves matter.

For your own portfolio, the risk is asymmetric. Mortgage costs and tax rises are certain and immediate. Rent recovery is slower and contested. The gap between those two timelines creates the real squeeze. A 5% rent rise in a flat-demand market is a false gain if void periods stretch to 8 weeks instead of 6.

The April 2027 tax change and the 2030 energy deadline are locked in. The mortgage environment is set by global borrowing costs, not landlord lobbying. The NRLA's plea for government intervention is ultimately a request to delay or soften the Renters' Rights Act rollout or the energy compliance timeline. Whether Westminster listens will shape lettings supply for the next five years.