Think tank finds private rented sector continues to grow in England
The Joseph Rowntree Foundation (JRF) analysis of government data shows the private rented sector in England reached over five million homes in 2025, contradicting claims of a landlord sell-off. The sector has grown steadily since 2021, albeit at a slower pace than in previous decades.
The Joseph Rowntree Foundation (JRF) has challenged recent narratives suggesting a decline in the private rented sector (PRS) in England. According to its detailed analysis of official government data, the PRS is not shrinking but expanding, reaching its largest size in decades with over five million homes by 2025. This growth contradicts reports from some agents, analysts, and property consultancies who have suggested that landlords are exiting the market in significant numbers.
The JRF’s findings are based on Ministry of Housing, Communities and Local Government (MHCLG) dwelling stock estimates, which indicate an average annual increase of approximately 45,000 homes in the PRS since 2021. While this rate is markedly lower than the peak growth experienced between 2005 and 2015—when the sector grew by around 200,000 homes per year—it nevertheless represents continued expansion rather than contraction.
Official data versus industry reports on sector size
The JRF also examined English Housing Survey data, which supports the conclusion of growth. The survey estimates about 4.7 million private renting households in 2024/25, increasing by roughly 55,000 households annually since 2021/22. This aligns with the MHCLG stock figures, reinforcing the view that the PRS is growing.
However, the foundation cautions against over-reliance on data from sources such as the National Residential Landlord Association (NRLA), Knight Frank, Hamptons, TwentyCi, and Handelsbanken. It notes that these bodies’ figures may be influenced by different methodologies, sample sizes, or market interpretations, and therefore should be treated with caution when assessing sector trends.
Ultimately, the JRF concludes that “none of the available data support with any real weight the idea that the PRS is shrinking,” and that official statistics demonstrate continued growth, albeit at a slower rate than seen in the past two decades.
Context of supply and demand pressures in the rental market
While the sector’s size is increasing, the JRF acknowledges persistent supply shortages relative to demand. This imbalance contributes to ongoing affordability challenges for renters. The foundation’s research highlights that many tenants would prefer to buy their own homes if more affordable options were available, underscoring the need for increased housing supply across the board.
Interestingly, the JRF references NRLA research on tenant preferences without disputing its validity in this instance, suggesting some alignment between landlord representative bodies and independent research on housing affordability issues.
This supply-demand dynamic remains a critical factor shaping the private rented sector’s evolution. Landlords and agents operate within a market where demand continues to outstrip available rental properties, influencing rental levels, tenancy terms, and investment decisions.
Implications for landlords and letting agents
For landlords managing small or medium portfolios, the JRF’s findings may offer reassurance that the sector remains viable and that fears of widespread sell-offs are overstated. The data suggests that while growth has slowed, landlords are not abandoning the market en masse. This stability can inform investment and management strategies, particularly in areas where demand remains strong.
Letting agents should note that the sector’s expansion, even at a reduced rate, sustains demand for rental properties and associated services. However, the slower growth rate may reflect broader economic and regulatory pressures affecting landlords’ willingness to acquire or retain rental homes.
Landlords should continue to monitor official data and sector reports carefully, recognising the differences in data sources and their implications. Understanding the nuances behind sector size and growth can help in planning portfolio adjustments, rent setting, and compliance with evolving regulations.
Remaining uncertainties and areas to watch
Despite the JRF’s analysis, uncertainties remain about the longer-term trajectory of the private rented sector. Economic factors such as interest rates, tax changes, and housing policy reforms could influence landlord behaviour and sector dynamics. Additionally, the impact of recent legislation—including the Renters’ Rights Act and potential tax changes—may alter landlord incentives and market participation.
The JRF’s caution regarding non-official data sources highlights the need for landlords and agents to scrutinise market reports critically and base decisions on robust, verified information. Future government releases and independent research will be essential to clarify trends and inform sector stakeholders.
What landlords should consider now
- Review official government data sources regularly to track sector size and growth trends.
- Assess local market conditions carefully, recognising that national trends may not reflect regional variations.
- Stay informed about regulatory changes affecting landlord responsibilities, tenancy agreements, and tax obligations.
- Consider tenant demand and affordability issues when setting rents and managing tenancies.
- Maintain accurate records and documentation to support compliance and portfolio management decisions.
Supporting landlords with sector insights and compliance tools
Membership of The Landlord Association (TLA) offers access to up-to-date compliance resources and practical information tailored to the evolving rental sector. TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is being developed to help landlords and letting agents organise property records, manage tenancy documentation, and keep track of regulatory developments. ORBIT’s features include tools for recording inspections, repairs, and communications, which are vital for evidencing compliance and managing portfolios effectively.
Exploring TLA membership and ORBIT BETA access can provide landlords with a structured approach to monitoring sector changes and maintaining compliance amid ongoing reforms and market shifts.
Looking ahead, landlords should remain vigilant to policy announcements and market data releases that may affect investment decisions and operational practices in the private rented sector.
Sources: Landlord Today, Joseph Rowntree Foundation
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