Government legislation driving larger landlords to sell properties

A new government survey reveals that larger landlords are planning to sell due to the impact of legislation, as small-scale landlords make up a large majority of the private rented sector.

The English Private Landlord Survey reveals the different types of landlords in the private rented sector, with corporate landlords only making up a small percentage.

The survey took place between 3 April and 19 May 2024 and includes concerns over the Renters’ (Reform) Bill as it was then known, but does not cover the Autumn Budget 2025.

45% of landlords own just one property

According to the survey, 45% of landlords own just one property, while only 17% own five or more.

Small-scale retired landlords made up 31% of respondents, typically holding 1–2 low-leverage properties as retirement income.

Short-term small-scale investor landlords accounted for 27%, usually using buy-to-let mortgages for rental income or capital growth.

A further 24% were small-scale investors focused mainly on using property as a long-term retirement investment.

The survey also reveals around 10% of landlords were moderate or large operators, with 4% running mixed business/investment portfolios and 5% operating larger, business-focused portfolios. Corporate landlords made up 7%, renting through company structures.

When asked about their investment plans for rental properties over the next two years, only a very small percentage of small-scale landlords (2%) indicated they intended to invest further.

Only 2% of small-scale retired landlords planned to increase their portfolio

According to the survey, corporate landlords were the only group where the intention to increase the number of properties let (26%) exceeded the intention to decrease it (21%).

Overall, 26% of corporate landlords said they planned to increase the number of properties they let out, the highest proportion planning an increase of any landlord type, compared with 2% to 10% among other landlord groups.

For landlords who planned to decrease the number of properties let or leave the sector completely, recent tax and legislative changes were cited as a reason by 81% of moderate-scale business and investor landlords and 78% of large-scale business landlords.

Small-scale retired landlords who planned to decrease the number of properties they let or leave the sector were less likely to cite this reason, with fewer than half (46%) choosing it.

The survey says: “These findings suggest that recent tax and legislative changes may have had a greater impact on the future property plans of larger, more business-oriented landlords, potentially influencing their decisions to expand, maintain, contract, or sell completely their portfolios in response to the evolving regulatory landscape.”

41% of landlords reported that all their properties were in band C or above

When asked about the EPC ratings of their entire portfolio, 41% of landlords reported that all their properties were in band C or above. Larger, more commercially focused landlords were more likely to hold properties with EPC ratings below band C, with 64% of large-scale business landlords, 61% of moderate-scale business and investor landlords, and 59% of corporate landlords having at least one property below this threshold.

The survey reveals small-scale retired landlords (41%) and small-scale investors holding properties for retirement (44%) were less likely to have properties below band C. While larger landlords show a higher proportion of properties below band C, their larger portfolio sizes make it more likely that they would have at least one property in this category.

Just over a quarter (26%) of landlords reported identifying damp or mould in any of their properties over the past year. This figure was higher among landlords with five or more properties, with nearly half (46%) reporting damp or mould issues.

Breaking it down by landlord type, 44% of corporate landlords, 44% of large-scale business landlords, and 42% of moderate-scale business and investor landlords identified damp in at least one property.

By contrast, only 25% of small-scale short-term investor landlords, 22% of small-scale investors for retirement, and 19% of small-scale retired landlords reported similar issues.