14th
Feb 2025
The worsening crisis in the UK’s PRS has been highlighted by a survey showing a decline in landlord confidence, with 67% believing conditions have drastically deteriorated.
The Total Property survey reveals that virtually half of landlords - 49% - intend to exit the private rented sector within the next five years.
The firm surveyed 3,500 landlords, tenants, and agents, uncovering a pressured sector where many landlords are concerned about the upcoming legislative changes under the Renters’ Rights Bill.
Only 3% of landlords are newcomers to the market, whereas a substantial 75% have been in the business for more than ten years.
The firm’s chief executive, Eddie Hooker, said: “The private rented sector is undergoing one of the most significant periods of change we’ve seen in decades.
“Rising costs, increasing regulation and shifting tenant expectations are reshaping the market, and this survey reveals just how deep these challenges run.
“With nearly half of landlords considering leaving the sector in the next five years or reducing the size of their portfolio, and tenants struggling with affordability, urgent action is needed.”
He added: “What’s particularly concerning is that the vast majority of landlords have been in the market for over a decade, while new investment has slowed to a trickle.
“The fact that so few new landlords are entering the sector is a clear indicator of where the market is heading.”
For landlords seriously considering exiting the market, regulatory changes are a major factor, 29% cite the abolition of Section 21 ‘no-fault’ evictions, while 24% point to the Renters' Rights Bill will be influential in their decision.
For one-third of landlords, the challenge of compliance burdens is a significant issue, compounded by rising costs at 19% and tax changes at 15%.
Mr Hooker said: “While strengthening tenant rights through increased regulation is vital, on the other side of the coin, landlords have little incentive to reinvest in the market under current conditions.
“Unless this changes, these protections will mean little, as we risk a crisis where tenants have nowhere to rent at a price they can afford.”
He continues: “Regulation must support both landlords and tenants fairly to strike the right balance and create a sustainable rental market for the future.”
The survey highlights that affordability challenges are hitting tenants hard, with 88% stating that rising rents are their primary concern.
The shortage of available properties is exacerbating the issue, affecting 49% of renters.
Nevertheless, 64% of tenants still report feeling secure in their current homes despite these hardships.
Only 6% of tenants consider the right to request a pet as the most crucial aspect of the Renters’ Rights Bill.
Letting agents face significant challenges, with 76% identifying compliance with regulatory changes as a primary concern, and the shortage of rental properties affects 61% of agents, and 73.5% report feel let down by the current government’s lack of support.
News Archive »