Minister backtracks on landlord exodus claims

The government has changed its tune regarding a landlord exodus, admitting it doesn’t know how many landlords have quit the private rented sector (PRS).

Previously, Housing Minister Matthew Pennycook has claimed there’s no evidence of a landlord exodus and the size of the PRS has doubled since the early 2000s.

However, in answer to a written question, Mr Pennycook now admits the government doesn’t know how many landlords have quit the sector.

Does not hold information

Labour MP Dan Carden asked: “How many landlords have exited the PRS in each year since 2020?”.

Mr Pennycook said: “My Department does not hold the information requested.

“HMRC data on the number of landlords in England declaring income from rental property, shows overall stability in the number of landlords since 2019-20.”

The data reveals the total number of unincorporated landlords who declared income from renting property in 2023 to 2024 was 2.86 million.

Previously denied a landlord exodus

However, Mr Pennycook has previously claimed at the Committee stage of the Renters’ Rights Bill that there is no evidence of a landlord exodus.

He said: “We don’t want an exodus of landlords from the sector, but I’ve seen absolutely no evidence of that. I think this is a threat that has been bandied about for many, many years now.”

Last year, in a written question, Mr Pennycook again denied a landlord exodus.

He said: “In the most recent release of the English Private Landlord Survey in 2024, 45% of landlords had only one property. This is similar to findings in 2021 (43%) and 2018 (45%).

“Whilst landlords have been aware of successive governments’ plans to reform the private rented sector since 2019, the size of the sector as a whole has remained broadly stable since 2013-14.”

Landlord exodus is happening

However, Mr Pennycook fails to mention that the exact same survey also reveals that landlords, regardless of how many properties they own, are planning to decrease their portfolios due to legislative changes.

The English Private Landlord Survey 2024 says: “Among landlords who planned to decrease their portfolio, recent tax and legislative changes were the most commonly selected reason (66%), followed by forthcoming legislative changes (44%).”

The report also warns more landlords in 2024 reported planning to decrease the size of their portfolio than in 2018 and 2021.

In 2024, 31% of landlords reported planning to decrease the size of their portfolio in the next two years, including 16% who were planning to sell all their properties.

As previously reported by Property118, many industry experts have warned a landlord exodus is happening, with RICS warning that landlords are pulling out of the PRS at the fastest rate since the early pandemic, and letting agents across the country reporting that landlords are panicking and exiting the market ahead of changes to the Renters’ Rights Act.