According to a survey, double the proportion of landlords with two or fewer properties are planning to sell up and leave the rental market, compared with those who have portfolios comprising over 10 properties
Significant structural changes are taking place inside the private rental sector, according to a survey of over 1,000 landlord clients of the Deposit Protection Service (DPS).
According to the survey, double the proportion of landlords with two or fewer properties are planning to sell up and leave the rental market, compared with those who have portfolios comprising over 10 properties (24.47 per cent compared with 12.16 per cent).
The survey also shows how nearly three times the proportion of landlords with portfolios bigger than 10 properties intend to buy more compared with those who own one or two (13.51 per cent compared with 5.63 per cent).
The research also finds that, of those intending to leave the market, more than twice the proportion of landlords who are not set up as a business for the purposes of renting intend to sell all of their properties and leave the private rental sector altogether compared to those operating a limited company (21.72 per cent compared with 10.34 per cent).
DPS MD Matt Trevett said: Whilst the volumes of tenancies we protect remains unchanged, the data indicates that landlords operating on a bigger scale are showing a stronger commitment to the private rental sector compared with those with fewer properties.
Landlords with a higher number of properties typically choose to place their businesses inside limited companies in order to better manage their costs, which are impacted by high interest rates and tax changes, Trevett said.
Trevett added: We are also seeing different intentions emerge among landlords who use companies compared with those who do not, indicating that how a landlord chooses to organise their business has a considerable impact on their attitude towards the market.