Individual landlords accounted for much of the reduction, with numbers dropping by 0.7%, while partnerships operating through joint ownership remained unchanged

The number of landlords in England has dropped by 1.04% over the past year, with individual landlords leading the exit, according to new analysis from Dwelly. The trend is expected to deepen as the Renters’ Rights Bill moves closer to implementation.

Dwelly reviewed the latest government figures released at the end of August, which cover landlords declaring rental income between 2019/20 and 2023/24. The data shows landlord numbers declined to 2.86 million in 2023/24, down from a five-year high of 2.89 million in 2022/23.

Individual landlords accounted for much of the reduction, with numbers dropping by 0.7%, while partnerships operating through joint ownership remained unchanged.

The decline comes after a year marked by new financial and legislative requirements. Higher energy efficiency standards and a series of tax changes introduced in 2023/24 have added pressure on smaller landlords in particular.

Regionally, Wales recorded the sharpest decline, down 2.7%. Yorkshire and the Humber and the South West each saw drops of 1.6%, followed by Northern Ireland and the North East at 1.5%. Numbers in the South East dropped by 1.3%. London was the only region to see an increase, rising 0.4% to 474,000 landlords. In contrast, some areas, such as the West Midlands, Channel Islands, and Isle of Man, showed no change.

Dwelly’s analysis suggests amateur landlords are most at risk of leaving the sector as the Renters’ Rights Bill takes shape. The planned abolition of Section 21 no-fault evictions, alongside wider reforms to tenancy agreements and compliance, is expected to make it more difficult for individuals to continue without additional resources.

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, said Sam Humphreys, head of M&A at Dwelly. 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.