A groundbreaking analysis of the English Private Landlord Survey 2024 has revealed seismic shifts in the UK’s private rented sector (PRS).
With 31% of landlords planning to downsize their portfolios within the next two years, the implications for letting agents, policymakers, and tenants are profound.
The long-held stereotype of landlords as wealthy, large-scale investors is increasingly detached from reality.
The survey findings reveal that nearly half (45%) of landlords own just a single property, while 38% own between two and four.
PORTFOLIO LANDLORDS
Meanwhile, larger portfolio landlords – those owning five or more properties – make up only 17% of the market yet control nearly half of all tenancies.
Lettings consultant and industry expert Toby Martin (main picture) says: “Many landlords aren’t in growth mode – they’re in survival mode. The days of assuming landlords are expanding their portfolios are over. Instead, they’re facing mounting financial and legislative pressures, and they need more support than ever.”
LANDLORD EXODUS
The survey paints a stark picture of landlord sentiment. The number of landlords planning to exit the market has doubled since 2018, driven by an overwhelming combination of economic uncertainty, tax changes, and a tightening regulatory environment. Many landlords find themselves squeezed by rising mortgage rates, stricter energy efficiency requirements, and the looming impact of proposed rental reforms.
As a result, 58% of landlords have raised rents on new lettings, with a median increase of 11% – a direct consequence of increasing operating costs. While this may provide temporary relief for landlords, the long-term stability of the PRS is at risk as affordability pressures on tenants mount.
CRITICAL LIFELINE
Despite these challenges, the survey highlights an increasing reliance on professional letting agents. Currently, 43% of landlords use an agent to secure tenants, while 18% opt for full management services – a trend that is significantly more pronounced among larger landlords.
Martin stresses the urgent need for agents to reposition their services: “If your messaging still focuses on portfolio growth, you’re missing the mark. Landlords need reassurance, compliance support, and a service that alleviates stress, not just tenant-finding assistance.”
This evolving landscape presents a clear opportunity for letting agents to become indispensable partners, offering landlords expertise in regulatory compliance, tenant management, and financial viability.
