The number of landlords has fallen to a seven-year low.
Hamptons International estimates that there were 222,570 fewer private landlords last year than in 2017, when the number peaked at 2.88m.
The firm says that last year there were 2.66m landlords in the country, the lowest number in seven years when there were 2.58m.
However, the average landlord now owns more properties, with a portfolio of 1.93 buy-to-let properties, the highest level since 2009 when the average landlord owned 2.02 properties.
Last year, 30% of landlords owned more than one buy-to-let property, the highest proportion on record.
The figure is up from 21% in 2016, when many of the anti-landlord tax and regulatory changes were announced, says Hamptons.
The firm puts average rents for new lets at £998 per month in January, up 3.6% on the same month last year.
Rents rose most in the south-west, followed by the east and greater London.
Aneisha Beveridge, head of research at Hamptons International, said: “The number of landlords in the private rented sector has fallen to the lowest level in seven years.
“While 222,570 landlords have left the sector since 2017 due to tax and regulatory changes, those who have stayed tend to have bigger portfolios – a further sign that the sector is professionalising.”
She added: “The number of new homes purchased by landlords remains low, which is feeding through to fewer homes available to rent.
“This is particularly true in the south, where rents are rising the most.”
Average rent of new lets (pcm)
| Region | Jan-19 | Jan-20 | YoY |
| Greater London | £ 1,714 | £ 1,783 | 4.1% |
| South West | £ 784 | £ 831 | 6.0% |
| South East | £ 1,037 | £ 1,070 | 3.2% |
| East | £ 943 | £ 982 | 4.1% |
| Midlands | £ 678 | £ 694 | 2.4% |
| North | £ 625 | £ 646 | 3.3% |
| Scotland | £ 639 | £ 653 | 2.2% |
| Wales | £ 652 | £ 659 | 1.2% |
| Great Britain | £ 963 | £ 998 | 3.6% |
| Great Britain (Excluding London) | £ 770 | £ 797 | 3.4% |
I predict the decline will continue a pace when landlords realise the full impact of the conservatives abolition of s21. The abolition of assured shorthold tenancies will be bad news for landlords and for decent tenants.
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It is very sad that the sector has come to this. I agree that more professional landlords is good as there are way to many ‘amateurish’ landlords. unfortunately the majority of landlords are still trying to manage their properties themselves and without anyone policing the huge amount of legislation, this is resulting in more amateurish behaviour rather than less.
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Will2, you are right but I would add that s21 has already almost been killed by a thousand cuts. There are so many trips and traps for landlords to invalidate a s21 notice that a determined tenant can probably ambush the landlord most of the time and if there is any doubt the County Court judges do their best to find against landlords. The Tenant Fees Act creates hidden traps that many landlords will fall into and a “prohibited payment” of even one penny is enough to scupper a s21 claim. Those of us landlords who remain and who can navigate the plethora of rules will probably make more money but we will have to take on more risk. The job is getting more stressful, needlessly.
Having 1.93 or 2.02 BTL properties doesn’t make you a professional landlord. If the Government wants a more professional sector then it should steer people towards professional training. Instead it just introduces new laws (such as The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020) with £5000 and £30,000 penalties for PRS landlords (yet exempts Councils and HAs because Government knows they would be bankrupted if they faced the same sanctions as private landlords).
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Ian, I whole heartly agree but this does not mean I should fold up and change my views and opinions on S21. Fact is it will fundementally abolish AST’s. I accept the Government cretins have been playing a cunning and deception game making it more and more difficult to gain possession of your property if you need to. Of course agents are also faced with a bit of a dilema as if they explain the impacts to their clients the client may sell up and get out of the market – loss of ongoing income to agent. Indeed talking a a fellow landlord recently he asked why his agent did not tell him of the proposed abolition of s21. Another local agent was infact supporting the Government interference as he did not want to scare off instructions. I am not suggesting all agent behave in this way. Come the time (not in the distant future) when landlords can’t readily get their property back, face having to go to court due to an aniti social tenant who he will have difficulty in removing ( and no certainty that he can), have neighbours who will be even more upset as it will deter landlords from the great expense of the nonesense of going to court to fight a case – rather than knowing they can get possession with limited losses. This government’s proposals are going from a sewer where you could get rid of rats to a cesspit where they will be there and will not leave. The government say they want a level playing field but are making that playing field a ski slope.
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