Small Welsh landlords leave the sector as rental stock declines

The Welsh rental market continues to shrink as small landlords leave the sector, while larger landlords increase their presence.

Data from the Rent Smart Wales register shows there were 213,463 registered properties and 100,422 landlords in May 2026. During the month, the number of registered properties fell by 532, while the number of registered landlords dropped by 290.

The data also shows that landlords who failed to register or obtain the correct licence accounted for more than 3,000 fixed penalty notices (FPNs) issued by Rent Smart Wales in the last 12 months.

Wales risks having fewer rental homes

According to the data, almost 70% of landlords in Wales own just one property, while a quarter own between two and five properties.

However, a third of rental properties in Wales are controlled by just 5% of landlords who own six or more properties.

At the top end of the market, just 0.62% of landlords own at least 21 properties. Together, they control more than 15% of the registered rental stock.

Propertymark warns that small landlords may struggle to absorb rising costs and calls on the Welsh government to do more to support small landlords.

The industry body writes on its website: “A healthy rental market needs landlords of different sizes. Larger professional portfolios have an important role, but Wales must remain an attractive place for responsible individual landlords and smaller investors too.

“We have called for governments across the UK to review the cumulative impact of tax and regulatory changes on private landlords. In Wales, we have urged the Welsh government to consider reducing the additional Land Transaction Tax burden for investment in long-term rental homes and to improve access to support for bringing empty properties back into use.

“The Rent Smart Wales figures strengthen the case for policies that retain existing landlords, encourage responsible investment and increase supply where it is most needed. Without action, Wales risks having fewer rental homes, concentrated among fewer owners and increasingly clustered in a small number of locations”.

The data also reveals that during May 2026, Rent Smart Wales recorded 1,680 new property registrations involving 686 landlords. However, the total number of registered properties fell by 532 during the month, while registration and licensing failures accounted for 96% of penalties issued.

All private landlords in Wales must register with Rent Smart Wales and either employ a licensed letting agent or become licensed to manage the property themselves.