Landlords blamed law changes and tax increases for reducing their portfolios or leaving the PRS completely, a new government survey shows.

More than three quarters of property owners with medium or large businesses quoted these reasons for their decision to take a step back.

Half of large-scale business landlords planned to either decrease or sell all of their rental properties, higher than other groups, according to analysis of the English Private Landlord Survey (EPLS).

Evictions

In relation to evictions, fewer than one in 10 landlords said they asked the tenant to leave (8%), 6% had evicted the tenant and 4% had decided not to renew at the end of a tenancy.

The EPLS, carried out by the Ministry of Housing, Communities and Local Government, also shows that 36% of landlords asked for rent in advance.

The landlord population of the PRS is “dominated” by landlords with only a small number of properties, with around 45% of landlords in the EPLS sample owning only one property, and only 17% owning five or more properties (representing 49% of tenancies).

The survey was carried out in April and May 2024, before the General Election, and legislative fears related to the Renters (Reform) Bill, which was largely mirrored in the recently-passed Renters’ Rights Act.

Warned

Ben Beadle, CEO at the NRLA (main picture) has repeatedly warned that landlords are exiting the rental market, putting more tenants ‘at risk of being made homeless’.

In July, it said households in the PRS threatened with homelessness due to a landlord exodus had increased by almost a fifth since the end of last year.

And the analysis highlighted the need to encourage responsible landlords to stay in the market.

Under strain

Sean Hooker, Head of Redress at Property Redress, which helped the Government compile its latest report, says: “The latest EPLS report shows a sector under strain, with many landlords looking to leave, but in my view this also marks the beginning of a wider professionalisation of the private rented sector.

“That transition will not be painless. We will inevitably lose more landlords, and that is concerning because it affects the stability of the market, reduces supply, and puts upward pressure on rents for tenants.

“However, we are now moving forward with more certainty. Landlords have a clearer understanding of the fiscal and regulatory landscape ahead, and we must prepare for a period of adjustment.

“This is a resilient sector. In the long term, I believe we will see the emergence of a sharper, more professional landlord cohort. Those entering or staying in the market will do so with a clear understanding of what is expected of them.

“While some landlords will understandably exit, others will adapt, and in time, I expect renewed interest from investors who see ways to make the new environment work for them.”

Read the full EPLS analysis here

More on landlords