Twice the number of landlords with one or two properties plan to sell up compared with those who own more than 10 properties, according to a new survey.

A poll of more than 1,000 landlords by The Deposit Protection Service (DPS) reveals that 24% of small landlords are set to leave compared with 12% of portfolio landlords, heralding significant structural changes in the PRS.

Twice the proportion of landlords who are not set up as a business (21%) plan to leave the PRS altogether compared to those operating a limited company (10%).

Limited company

The survey also found that 24% of landlords who operate a limited company intend to buy more property compared to 4% of those who are not set up as a business. Only 8% of landlords operating as sole traders intend to buy more rental properties, the DPS adds.

MD Matt Trevett (pictured) says the data suggests that landlords operating on a larger scale are showing a stronger commitment to the PRS compared with those with fewer properties.

He adds: “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.”

A separate DPS survey of 911 letting agents’ clients reveals 28% believe that larger landlords are now more frequently purchasing properties from those with more modest portfolios.