Rising costs and mounting red tape are reshaping the private rented sector as it drives out small-scale landlords and properties consolidate in larger portfolios, The Deposit Protection Service (DPS) has claimed.

The data comes from its Private Rented Sector Review and is based on a survey of more than 1,000 landlords. It shows the proportion of landlords owning one or two properties fell from 57% to 50% between October 2024 and October 2025.

Over the same period, the share of landlords with three to five properties increased from 27% to 31%, while those owning 11 or more rose from 5% to 8%. The proportion with six to 10 properties remained unchanged, though, at 11%.

Matt Trevett, Managing Director at The DPS, says: “Taken together, these findings point to a gradual reshaping of the landlord landscape.

The data suggest the sector is continuing to consolidate.”

“Smaller landlords now account for a shrinking share of the market, while medium and larger portfolios are becoming more prominent.

“At a time of ongoing economic pressure and regulatory change, the data suggest the sector is continuing to consolidate.”

The report not only reveals how landlords are structuring their rental investments, it also reveals where they are deriving their income.

Landlord incomes

More than a third (36%) say rent is their main source of income, while a majority (56%) say it was not their primary source. Despite reports to the contrary, just 5% say they are using limited companies, with 28% continuing to let as individuals or sole traders.

You can read the full report here.