Significant structural changes are taking place inside the private rental sector (PRS), according to a survey of more than 1,000 landlord clients of the Deposit Protection Service (DPS).
The survey shows that 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 more than 10 properties (24.47% compared with 12.16%).
The research also shows how almost three times the proportion of landlords with portfolios larger than 10 properties intend to buy more compared with those who own one or two (13.51% compared with 5.63%).
The survey also reveals 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 PRS altogether compared to those operating a limited company (21.72% compared with 10.34%).
DPS managing director Matt Trevett said: “Whilst the volumes of tenancies we protect remains unchanged, the data suggest that landlords operating on a larger scale are showing a stronger commitment to the PRS 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.
“We are also seeing different intentions emerge among landlords who use companies compared with those who don’t, suggesting that how a landlord chooses to organise their business has a significant impact on their attitude towards the market.”
