Landlords ‘set to pull more than 200,000 rental properties this year’
An estimated 220,000 homes will be withdrawn, with 65,000 due to the Renters' Rights Act, according to new research.
Landlords are set to withdraw more than 200,000 properties from the private rented sector this year, with 65,000 due to the Renters’ Rights Act.
An estimated 220,000 homes, or 5% of the total, are projected to leave the PRS in England by the end of 2026, according to research from specialist lender Pepper Money.
Exit market
The trend is most pronounced among smaller landlords, with those owning a single property twice as likely to exit the market compared with landlords holding two or more properties.
The legislation’s changes to tenancy agreements, notice procedures and property management obligations are prompting landlords to reconsider their portfolios across the country, Pepper Money says.
Smaller landlords
Paul Adams, Sales Director at Pepper Money, says: “Our research highlights how the combination of changing legislation and rising operating costs is prompting many landlords to review their portfolios.
“Smaller landlords, particularly those with just one property, are significantly more likely to leave the market as they reassess their portfolios,” he says.
“Larger landlords who are better equipped to absorb additional costs and regulatory requirements are choosing to remain, contributing to a gradual professionalisation of the private rented sector.”
The South East is projected to see the highest volume of dwellings exiting the PRS, with more than 46,000 leaving the market, representing over a fifth of all exits, with 15% of all private landlords planning to sell.
