A recent government survey reveals that larger landlords are increasingly considering selling their properties due to the impact of recent legislation. This shift is significant as small-scale landlords continue to dominate the private rented sector, shaping the future landscape of UK rental housing.

Overview of the English Private Landlord Survey

The English Private Landlord Survey, conducted between 3 April and 19 May 2024, provides detailed insights into the composition and intentions of landlords across England’s private rented sector. While the survey captures concerns related to the Renters’ (Reform) Bill, it predates the Autumn Budget 2025 and therefore does not reflect any changes introduced thereafter.

The survey highlights that corporate landlords represent only a small fraction of the market, with the majority of landlords being small-scale operators.

Landlord Portfolio Sizes and Types

According to the survey, 45% of landlords own just one property, and only 17% own five or more. The landlord population can be segmented as follows:

• Small-scale retired landlords constitute 31% of respondents, typically holding one or two low-leverage properties as a source of retirement income.
• Short-term small-scale investor landlords make up 27%, generally using buy-to-let mortgages aiming for rental income or capital growth.
• Small-scale investors focused on retirement account for 24%, viewing property as a long-term retirement investment.
• Moderate and large operators represent around 10%, with 4% managing mixed business and investment portfolios and 5% running larger, business-focused portfolios.
• Corporate landlords, renting through company structures, make up 7% of the market.

Investment Intentions and Impact of Legislation

The survey reveals a cautious outlook among landlords regarding future investment. Only 2% of small-scale landlords intend to increase their property portfolios over the next two years. In contrast, corporate landlords are more likely to expand, with 26% planning to increase their lettings compared to 21% intending to reduce them.

For moderate and large-scale business landlords, recent tax and legislative changes are a major factor influencing decisions to reduce portfolios or exit the sector, cited by 81% and 78% respectively. Small-scale retired landlords are less affected by these changes, with only 46% citing legislation as a reason for reducing their holdings.

The survey notes: “These findings suggest that recent tax and legislative changes may have had a greater impact on the future property plans of larger, more business-oriented landlords, potentially influencing their decisions to expand, maintain, contract, or sell completely their portfolios in response to the evolving regulatory landscape.”

Energy Performance and Property Condition

Energy Performance Certificate (EPC) ratings are a growing concern for landlords. The survey found that 41% of landlords reported all their properties were rated band C or above. However, larger landlords are more likely to have at least one property below band C, with 64% of large-scale business landlords, 61% of moderate-scale business and investor landlords, and 59% of corporate landlords affected.

Smaller landlords, particularly those retired or investing for retirement, tend to have better EPC ratings, with 41% to 44% reporting no properties below band C.

Regarding property condition, just over a quarter (26%) of landlords reported damp or mould issues in the past year. This problem is more prevalent among landlords with five or more properties, with nearly half (46%) reporting such issues. Corporate landlords and large-scale business landlords reported damp or mould in around 42% to 44% of their properties, while smaller landlords reported lower incidences.

Implications for UK Landlords and Agents

The survey’s findings underline the challenges faced by larger landlords in adapting to an evolving regulatory environment. The increased costs and compliance requirements linked to legislation such as the Renters’ (Reform) Bill, alongside tax changes, appear to be prompting some larger operators to downsize or exit the market. This shift may lead to a greater reliance on small-scale landlords, who tend to have simpler portfolios and different investment motivations.

For landlords and letting agents, understanding these trends is crucial for strategic planning. Maintaining compliance with EPC standards and managing property conditions like damp and mould remain priorities. Additionally, the potential reduction in larger portfolios could impact rental supply and market dynamics, influencing rental prices and tenant options.

Upcoming Support for Landlords

In response to the evolving needs of landlords and property professionals, TLA is launching a new Trusted Partners Hub in Q1 2026. This initiative will feature verified and approved service providers selected to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/.