Larger, professional landlords are best placed to take the private rented sector forward as they have the resilience to adapt to rental reforms, according to one property tech boss.
These landlords typically treat lettings as their primary business and either have in-house management teams or work closely with experienced letting agents to ensure they stay compliant, manage costs effectively, and maintain high property standards, says Sam Humphreys, head of M&A at rental platform Dwelly.
“Their scale allows them to spread the costs of new regulations and invest in systems that make compliance and management more straightforward,” he tells LandlordZONE.
“This doesn’t mean smaller landlords can’t operate successfully - many do - but the resources and infrastructure of larger landlords often make them more resilient to legislative and economic changes.”
Humphreys says agents are reporting that some smaller, part-time landlords are finding it harder to make the numbers work, particularly as mortgage repayments, maintenance, service charges, and the cost of meeting higher property standards have all increased.
“When lettings is a secondary income rather than a main business, these pressures can quickly erode profitability,” he adds.
There’s concern about the uncertainty surrounding the Renters’ Rights Bill
“Alongside this, there’s concern about the uncertainty surrounding the Renters’ Rights Bill, particularly around how future changes will affect the ability to manage tenancies effectively.
"For many, it’s not about unwillingness to adapt, but about lacking the time, resources, and support systems to do so efficiently.”
The UK’s biggest landlord, Grainger, has previously echoed these views, with CEO Helen Gordon predicting that the Bill will “professionalise the rental market and raise standards”, while smaller landlords will “find the new regime challenging and will therefore accelerate their exit from the market, further constraining supply”.
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