More amateur landlords exiting
The latest analysis from Dwelly, one of the UK’s leading lettings acquisition and success planning experts, has revealed that the number of landlords in England has declined by 1.04%, with the exit of individual landlords driving this reduction – a trend that is set to intensify with the introduction of the Renters’ Rights Bill.
Dwelly analysed the latest Gov data released at the end of August, looking at the number of landlords declaring rental income between 2019/20 and 2023/24.
The analysis shows that the number of landlords doing so fell to 2.86 million in 2023/24, down 1.04% on the year and marking a clear decline from the five-year peak of 2.89 million reached in 2022/23.
This reduction has been driven by individual landlords, with their numbers falling by 0.7%, while jointly owned set-ups operating via partnerships have remained static.
The fall in numbers follows a challenging year of legislative and financial pressure, with higher energy efficiency standards and a raft of tax changes introduced in 2023/24 denting confidence among smaller, individual landlords.
Regionally, Wales saw the largest annual drop, with landlord numbers falling by 2.7%.
Yorkshire and the Humber and the South West also saw notable declines at -1.6%, followed by Northern Ireland and the North East at -1.5%. The South East fell by -1.3%, while in contrast London was the only region to record an increase, rising 0.4% to 474,000 landlords. Some regions, such as the West Midlands, Channel Islands and Isle of Man, remained static.
Dwelly’s analysis suggests that it is the nation’s amateur landlords who are most at risk of exiting the market as the Renters’ Rights Bill fast approaches. The proposed abolition of Section 21 no-fault evictions, alongside wider reforms to tenancy agreements and compliance, threatens to make it even harder for individuals to operate without significant additional resources.
Sam Humphreys, head of M&A at Dwelly, commented: “Such a significant shake-up is inevitably going to push some landlords from the sector and our analysis suggests that it’s the nation’s amateur landlords who are most likely to call time when the Renters’ Rights Bill comes into force.
This is down to the fact that they simply don’t have the resources to pivot with such monumental changes and it’s understandable given all they have had to contend with following previous legislative changes.
At Dwelly, we’ve been working hard with our letting agents to ensure their operational processes are as streamlined and cost-effective as possible. This in turn ensures that the landlords they service benefit to the same extent, reducing the workload associated with managing their portfolios and tenants while improving their profit margins. With the right support and technology, landlords can adapt and thrive despite the challenges of the Renters’ Rights Bill and we would urge even the most amateur of landlords to work with their letting or managing agent to see how they can help lighten the load.
A daunting period awaits, but for those who can weather the transition, the buy-to-let sector remains a profitable endeavour.”
Data tables and sources