The English Private Landlord Survey conducted by the Ministry of Housing, Communities and Local Government (MHCLG) found that they were the only type of landlord with a larger share who wanted to increase their portfolio rather than sell.
Some 21% of corporate landlords plan to decrease the number of properties let, while 30% would keep the number the same.
Small-scale retired landlords and small-scale investors planning for retirement were most likely to keep their portfolio size the same, making up 48% and 43% of responses respectively.
Half of large-scale business landlords – those with a larger portfolio who considered their role as a business rather than an investment – said they were considering reducing the number of properties they let or exit the sector altogether.
Across all landlord types, 42% said they planned to keep their number of rental properties the same for the next two years and 31% intended to decrease it, with a further 16% planning to leave the sector altogether. Just 7% of all landlords said they were looking to let out more properties.
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Impact of tax and legislative changes on landlords
As the survey was carried out in 2024, the Renters’ Reform Bill was referenced in the survey as upcoming legislation that could influence landlords’ decisions, and the MHCLG said that while this was helpful, it did not give a clear picture of what impact the Renters’ Rights Act would have.
Of the landlords who planned to increase their portfolio or keep it the same, 16% of limited company landlords said this was because of upcoming legislation, as did 14% of moderate-scale business and investor landlords and 11% of large-scale business landlords.
Small-scale retired landlords and small-scale investors for retirement landlords were least likely to cite this as a reason, accounting for just 5% and 8% of responses within these groups.
Larger landlords who were thinking of decreasing their portfolios or leaving the sector were more likely to attribute this to upcoming legislation, cited by 58% of moderate-scale business and investor landlords, 56% of limited company landlords and 53% of large-scale business landlords.
The MHCLG concluded that legislative changes had more influence on larger, business-focused landlords.
When asked about recently implemented tax changes and legislation, 81% of landlords who wanted to decrease the number of properties let, 81% of moderate-scale business and investor landlords cited this as a reason, as well as 78% of large-scale business landlords.
Influences behind rent setting
The survey found that 52% of landlords put up the rent the last time they renewed or extended a tenancy, while 39% kept it the same and 1% decreased it.
Some 36% of landlords said the decision to increase the rent was to recover costs from renovation or decorating, licensing and meeting Minimum Energy Efficiency Standards (MEES).
However, the market had a larger impact on landlords as 72% said they decided to raise, maintain and reduce rates in line with the market.
Limited company landlords were more likely to do this, representing 82%, as well as 81% of moderate-scale business and investor landlords.
