This is how many landlords are set to quit private sector

This is how many landlords are set to quit private sector


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Over a third of a million landlords may quit the private rental sector as a result of being penalised by tax and an onslaught of red tape. 

An analysis by finance firm Octane Capital says this could wipe £223.5 billion from the value of the private rental sector in the process. 

Across the UK the sector currently accounts for 18.8 per cent of all dwellings, which equates to around 5.6m homes. 

It is estimated that these properties are owned by 2.74m landlords, with each landlord owning an average of just over two properties. 

However Octane believes this number could be on the brink of a significant decline as, rather than addressing the housing crisis head on, the government has introduced a string of legislative changes designed to deter buy to let investment, by reducing landlord profit margins – a move that has seen the amateur landlord hit hardest. 

It is estimated that 14 per cent of the UK’s buy to let landlords are so-called amateur landlords, owning just one rental property. This equates to some 383,600 landlords across the nation, and therefore, the same number of privately rented homes. 

Octane says this would mean the PRS loses 383,600 of the 2.74m homes currently available across the sector, which would result in a 14 per cent stock reduction. 

Octane Capital chief executive Jonathan Samuels says: “In recent years, the UK government has looked to eradicate the amateur landlord via a string of legislative changes, designed to dent profit margins in order to help address the shortage of stock within the sales market. 

“Firstly, this is not a practical or reasonable solution when really the answer is to build more homes. Secondly, in doing so, it’s the nation’s tenants who are paying the price, with a shortage in stock only driving the cost of renting ever higher. 

“Should amateur landlords cease to exist, it would further reduce PRS stock levels by a significant amount and only exacerbate the problem further.”

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