The number of landlords in England is falling with small-scale operators leading the exodus ahead of sweeping reforms to the rental market.
Analysis by Dwelly, the lettings consultancy, shows that 2.86 million landlords declared rental income in the 2023-24 tax year, down 1.04% on the year and below the five-year peak of 2.89 million reached in 2022-23.
The decline was driven almost entirely by individuals, whose numbers fell by 0.7%, while partnerships and corporate set-ups held steady.
The contraction follows a period of rising financial and regulatory pressure, including higher energy efficiency standards and a series of tax changes.
RENTERS’ RIGHTS BILL
The introduction of the Renters’ Rights Bill, which will abolish Section 21 “no-fault” evictions and overhaul tenancy agreements, is expected to accelerate the trend.
Regionally, Wales recorded the sharpest annual fall, with landlord numbers down 2.7%.
Yorkshire and the Humber and the South West each fell by 1.6%, while the North East and Northern Ireland were down 1.5%.
The South East slipped by 1.3 %. London was the only region to buck the trend, rising 0.4% to 474,000 landlords.
LACK OF RESOURCES
Sam Humphreys, head of M&A at Dwelly, says: “Such a significant shake-up is inevitably going to push some landlords from the sector and our analysis suggests that it’s the nation’s amateur landlords who are most likely to call time when the Renters’ Rights Bill comes into force.
“This is down to the fact that they simply don’t have the resources to pivot with such monumental changes.”
PROFITABLE ENDEAVOUR
He adds: “A daunting period awaits, but for those who can weather the transition, the buy-to-let sector remains a profitable endeavour.”
Industry experts have long warned that smaller landlords are particularly exposed to regulatory change, with many lacking the scale or professional management infrastructure to absorb compliance costs.
The government argues that reforms are needed to deliver greater security and fairness for tenants in a market where more than 11 million people now rent privately.
