Retirement plans at risk as over-55s forced to sell properties ahead of Labour crackdown

Temie Laleye
Sat, 02 May 2026 05:00:01 +0000

Older landlords are increasingly selling up as new renting laws come into force, raising concerns over the impact on retirement income.

Industry figures warn the changes could push over-55s out of the market, forcing some to rethink how they fund later life.

Many over-55s are now offloading rental properties ahead of the Renters’ Rights Act 2025 coming into force tomorrow, putting retirement plans built over decades of investment under pressure.

Vann Vogstad, chief executive and co-founder of property management platform COHO, told GB News that the sweeping reforms are already driving sales among older property owners.

"These reforms will lead to more landlords choosing to sell their properties, and we're already seeing it, particularly among older landlords," Mr Vogstad said.

The legislation, which takes effect on May 1, 2026, represents the most significant overhaul of England's private rental sector in a generation, abolishing no-fault evictions and introducing rolling tenancies for all renters.

Mr Vogstad explained that those most affected tend to be property owners who have reached or are approaching retirement age.

"In my experience, they are typically 55+. Many have built a side portfolio alongside their job and perhaps have retired or are nearing that point," he said.

For these landlords, rental income was intended to provide financial security in their later years, with property investment historically serving as a primary wealth-building strategy for middle-class investors.

However, Mr Vogstad noted that the new regulations have become the breaking point for many in this demographic.

"The RRA hasn't massively changed the viability, but for many it's more the 'final straw'," he said, referring to years of regulatory changes that have reshaped the buy-to-let landscape.

The decision to sell appears rooted in emotion rather than financial calculation, according to Mr Vogstad.

"Unlike the taxation changes a few years ago, which fundamentally changed the profitability of investing as an individual (instead of via a limited company), this seems more emotion- or fear-based," he said.

Mr Vogstad pointed to growing frustration among landlords who feel unfairly targeted despite providing quality accommodation.

"The anti-landlord sentiment frustrates many landlords who offer great properties and service to people desiring or needing flexibility. But for the many landlords who feel that they've been targeted for years, this is another layer of 'adapt your business, or face huge fines'," he explained.

The financial consequences of non-compliance have also escalated dramatically.

"The fines for doing things 'wrong' now will wipe out many years of profit from a single mistake," Mr Vogstad warned.

The Renters' Rights Act 2025 introduces sweeping protections for tenants across England's private rental market.

Under the new rules, landlords can no longer remove tenants without providing a valid legal reason, ending the practice of so-called no-fault evictions.

All tenancies will shift to rolling monthly arrangements, allowing renters to leave with two months' notice rather than being locked into fixed-term contracts.

The legislation also restricts rent increases to once annually, with tenants given the right to challenge rises they consider unreasonable.

Upfront costs have been curtailed too, with landlords permitted to request only a single month's rent in advance.

Competitive bidding for properties has been banned, preventing prospective tenants from being pressured into offering above the advertised rent.

Mr Vogstad cautioned that landlords rushing to exit the market simultaneously are likely to face unfavourable selling conditions.

"Almost certainly. And many may have had the idea that they'd do this anyway. Though the latest changes are pushing many of them to do this right away, at the same time, which means it's likely a much worse market for them," he said.

While older investors retreat, a new generation is entering the sector with different ambitions.

"We are seeing more of the younger generation focus on high earning potential, specialist property investments, such as HMOs. This is probably because they would rather spend energy learning how to maximise returns instead of pursuing something simpler," Mr Vogstad observed.

He added that many younger landlords are purchasing through limited companies to navigate the changed regulatory environment.