PR Crisis Signals Mass Exodus of Private Landlords

The UK’s private rented sector (PRS) is facing an escalating crisis, as a recent survey highlights plummeting landlord confidence and mounting pressures on tenants. According to the Total Property survey, 67% of landlords believe conditions have significantly worsened, while nearly half (49%) plan to exit the market within the next five years.

Landlords Losing Confidence Amid Regulatory Shifts

The survey, which gathered insights from 3,500 landlords, tenants, and agents, underscores the growing strain within the sector, particularly in response to impending legislative changes under the Renters’ Rights Bill.

A striking trend is the lack of new investment in the sector. While only 3% of landlords are newcomers, a dominant 75% have been in the market for over a decade. Eddie Hooker, chief executive of Total Property, warns that the PRS is undergoing one of the most transformative periods in decades:

“Rising costs, increasing regulation, and shifting tenant expectations are reshaping the market. With nearly half of landlords considering leaving the sector or reducing their portfolios, and tenants struggling with affordability, urgent action is needed.”

Hooker also highlights the decline in new investors, describing it as a clear warning sign:

“The fact that so few new landlords are entering the market shows where we’re heading. Unless conditions improve, we risk an exodus that will severely impact rental supply.”

Regulatory Burdens Driving Landlords Away

For landlords considering an exit, regulatory changes remain a leading concern:

• 29% cite the abolition of Section 21 ‘no-fault’ evictions as a key reason for leaving.
• 24% point to the Renters’ Rights Bill as a factor in their decision.
• 33% find compliance requirements overwhelming, particularly as costs continue to rise.
• 19% cite rising operational costs, while 15% are concerned about tax changes.

While Hooker acknowledges the need for stronger tenant protections, he warns that the current approach is driving landlords out of the market, ultimately harming tenants:

“Regulation must strike a fair balance between protecting tenants and ensuring landlords have a reason to stay in the market. Without this, we face a crisis where tenants struggle to find homes they can afford.”

Tenants Struggle with Rising Rents and Supply Shortages

The affordability crisis is hitting tenants hard, with 88% citing rising rents as their primary concern. The shortage of available properties only worsens the situation, affecting 49% of renters.

Despite these challenges, 64% of tenants still report feeling secure in their current homes. However, issues such as the right to request a pet—one of the key proposals of the Renters’ Rights Bill—rank low on tenants’ priority lists, with just 6% considering it a crucial change.

Letting Agents Struggle with Compliance and Supply Issues

Letting agents are also feeling the strain, with:

• 76% citing compliance with new regulations as a major challenge.
• 61% struggling with a shortage of rental properties.
• 73.5% expressing disappointment in the government’s lack of support.

The Future of the PRS: Urgent Action Required

The findings paint a concerning picture of the PRS, with landlords exiting, new investors hesitant to enter, and tenants facing rising rents with fewer options. Without policy adjustments that support both landlords and tenants, the UK risks an even greater rental supply crisis in the years ahead.