A third of landlords consider quitting the PRS to avoid rising costs and new laws

Nearly one in three landlords are considering quitting the private rented sector, driven by escalating maintenance costs and tougher regulations, research reveals.

The findings from Aldermore also highlight that nearly a third of landlords have already begun selling off properties.

The potential mass departure – 31% say they’re looking to quit altogether – will increase the rental home scarcity.

The bank says that 34% of landlords point to soaring maintenance costs as a primary concern, matched by an equal number who are worried about the impact of the impending Renters’ Rights Bill.

Also, 29% are influenced by the stamp duty increase for buy to let properties, announced in the Autumn Budget, pushing them towards selling their investments.

Landlords are being squeezed

The bank’s director of mortgages, Jon Cooper, said: “Year on year, we’re seeing the private rental sector become a more challenging environment, for both landlords and renters.

“Increased regulation, high mortgage rates and high maintenance costs mean more landlords are unfortunately being squeezed out of the market.

“This in turn is impacting renters who are dealing with increased competition for properties in addition to higher rents.”

He added: “Our data shows year after year that most landlords have positive relationships with their tenants.”

29% have begun selling

Action has already been taken by nearly 29% of property owners, who have disposed of part of their holdings over the past year, averaging a 32% reduction in their portfolios.

And this is despite tenant demand surging – 49% of landlords have seen a rise in interest from renters.

A staggering 69% of landlords warn that a mass exit would degrade property standards, while 70% of recent tenant movers report fierce competition for available homes.

For one in four of these movers, their previous residence was sold by the landlord, forcing relocation.

Tenants returning home

On top of that, 61% of private tenants fear that escalating rents might compel drastic lifestyle changes, such as returning to family homes or sharing larger houses with more occupants.

Despite the negative sentiment, landlords feel unfairly targeted – 27% say they are exhausted from being blamed for broader housing issues.

However, two-thirds of tenants (66%) view their interactions with landlords positively, appreciating the 77% who maintain good communication.

Mr Cooper said: “Looking ahead, we must ensure that the private rental sector remains a viable environment for landlords to operate in, as a continued exodus will place greater strain on an already stretched sector, further impacting tenants.

“Aldermore welcomes the government’s efforts to increase transparency within the sector and recognise the role that good landlords play through the Renters’ Rights Bill, but this must be done in a way that is proportionate and does not create undue additional strain on landlords.”

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