Zoopla’s boss predicts a shift to corporate landlords for the PRS

The boss of property listings website Zoopla, Charlie Bryant, says that being a private landlord is no longer financially viable – and corporate landlords will move into the market.

Speaking to the Telegraph, Mr Bryant, who leads Zoopla’s parent company Houseful, highlighted that individual buy to let investors are retreating from the private rented sector (PRS).

He points to rising taxes, high mortgage rates and increased regulation for the exodus.

However, in their place he is predicting that pension funds and private equity firms will replace private landlords, capitalising on the profitable build-to-rent (BTR) sector.

He notes that the removal of tax relief on BTL mortgages and the 3% stamp duty surcharge on second homes, introduced in 2016, have significantly impacted the attractiveness of being a landlord.

‘More corporate institutional landlords’

Mr Bryant told the Telegraph: “Undoubtedly the next iteration [of the rental market] is, particularly with potential planning changes, will be larger, more corporate institutional landlords, under the build-to-rent guise.”

Data from UK Finance supports his view, showing a contraction in the buy to let mortgage sector for the first time since 1996.

This trend coincides with Labour’s plans under Sir Keir Starmer to overhaul planning rules and build 1.5 million homes, potentially favouring corporate BTR investors.

The build-to-rent model, which is already prevalent in the US and Germany, is rapidly expanding in the UK.

According to JLL property consultants, the number of BTR flats in Britain has surged from 7,200 in 2015 to more than 90,000 today, with another 90,000 in development.

Despite this growth, these figures are still small compared to the 4.6 million households in the private rental sector.

Build-to-rent will be integral

Various property experts believe that build-to-rent will be integral to Labour’s housing strategy of building 1.5 million homes in the next five years, especially as high immigration levels drive rental demand.

Mr Bryant said: “Net migration remains high. The UK remains a very, very popular destination for overseas students and migrant labour.

“We are still a very strong financial centre and therefore we get a lot of expats coming in.”

To address the increasing demand, Mr Bryant is urging the government to construct a variety of homes, including social and affordable rent.