More than a quarter of landlords in England are planning to leave the rental market, according to research from SpareRoom.

The flatshare site found 27% of landlords are exiting the sector altogether, while 36% are reducing the size of their portfolios.

Fewer than 4% are expanding their portfolios.

The research also found 78% of landlords have no confidence in the current rental market following the introduction of key Renters’ Rights Act reforms in May.

Among landlords with five or more buy-to-let properties, 53% are reducing their portfolios.

Smaller landlords were the most likely to be leaving the sector altogether, with 44% of those owning a single rental property saying they were exiting.

Key private rental sector reforms under the Renters’ Rights Act took effect in England on May 1, including the abolition of section 21 no-fault evictions and new rules to stop bidding wars over rent.

The changes come as room rents have reached record highs in most UK regions and rental supply has fallen.

SpareRoom director Matt Hutchinson says: “It’s still early days for a change that’s supposed to offer a generational shift in behaviour.

“But for all the good it has done tenants so far – and the end of no-fault evictions and bidding wars has been positive – the Renters’ Rights Act has also battered supply and forced up asking rents.

“It’s unlikely this will be resolved any time soon because landlords are still reacting to the changed landscape.

“Some have told us that while they are not selling up right now, they don’t plan to re-let when their current tenants leave.

“While landlords have the option to walk away and invest their money elsewhere, tenants do not.

“They are now facing the fallout of a private rented sector that’s deterring those who provide homes.”