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17/12/25 3:30 pm
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The government’s conviction that larger landlords will simply replace smaller landlords following upcoming reforms could backfire, according to a property lawyer.
David Smith, at Spector Constant & Williams, says a statement in response to the EPC consultation setting out the government’s attitude to the PRS indicates little understanding of exactly how the Renters’ Rights Act and new energy efficiency targets will impact the sector.
The government consultation explains: “It is important to acknowledge that whilst the profile of private landlords may change, this does not automatically equate to a contraction of the sector. According to the English Housing Survey 2022-23, over the past decade the size of the PRS has remained consistent relative to the total housing in England…according to the English Private Landlord Survey 2024, the proportion of landlords that let one property, between two and four properties, and five or more rental properties has remained roughly the same since the 2018 survey.”
Smith says it has been “pretty obvious” that the government intends to reshape the PRS, but it’s clear that while it expects some landlords to sell up, it also expects a lot of that stock to be picked up by other landlords with larger portfolios.
“It seems to me to be a real risk that once this all settles down the government may find that a whole group of tenants is no longer being served by the PRS,” says Smith. “There appears to be little understanding of that fact, what groups might be in this position, and how they might be housed in future.”
He adds: “It is all very well for the government to say that other landlords will come in and pick up the slack but the point they miss is that different landlords have different business models and if you move one style of landlord - and model - out and replace it with another then the new business model may target a totally different group of tenants.”
The latest English Private Landlord Survey (EPLS) also found that corporate landlords were the only segment showing signs of expansion, with 26% planning to increase their portfolios.
Savills believes the government’s regulatory and tax regime have disproportionately impacted small landlords because those with larger portfolios have been able to restructure their businesses.
It reports that ownership changes has impacted some markets more than others; while rental supply has fallen across all types of properties, suburban housing markets have been hit harder than urban apartment markets. Landlords selling houses to owner occupiers is a good outcome for those wanting to own their own home, but without replacement, it means that rental households are being displaced.
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