As private landlords disappear, who will replace us?

Property118

As private landlords disappear, who will replace us?

Two stories this week caught my landlord eye, and they deserve to sit side by side for a closer analysis, because nobody in the housing debate seems willing to put them there.

For years, landlords (especially me) have warned that punishing the private rented sector (PRS) would backfire on the very people policymakers claim to protect.

Now, the data is trickling in, and the damage appears to be done, leaving the hypocrisy for everyone to see.

The first, from consultancy TwentyEA, is that almost 850,000 properties have left the private rented sector across the UK in the last decade.

That is roughly one in six rented homes gone, with 181,000 lost in 2025 alone.

BtR listings rise

The data shows that listings are at a seven-year high, but the composition of the sector is changing, with Build to Rent listings up 22% year on year in the second quarter of 2026.

Now put these two facts together and we have a problem that tenants’ rights campaigners have shown little interest in discussing.

It’s this: the individual landlord, the one absorbing Section 24’s mortgage interest restriction, hefty selective licensing fees, and a proposed ombudsman regime with penalties reaching £40,000, has been squeezed out.

That’s good right? All landlords are bad, the campaigners’ narrative claims.

But the institutional landlords replacing them have a very different structure. They are not individual higher-rate taxpayers watching their finance costs treated as profit.

BtR premium for rents

Also, these corporates charge tenants more and industry figures put the Build to Rent premium at around 12.3% above the wider market.

Nobody has launched a campaign against that.

This is worth sitting with, because it cuts against the story that has been told for years.

Landlords were framed as the obstacle to affordable, well managed housing.

Remove enough of them, went the logic, and something better would take our place.

What has actually taken our place is a corporate product that charges a premium the departing landlord rarely charged, answers to shareholders rather than a local tenant relationship, and is less likely to offer the level of informal flexibility that individual landlords quietly extended.

That includes keeping the rent low for a tenant between jobs or temporarily relaxing payment arrangements for someone experiencing serious illness.

That kind of kindness or consideration does not appear in a spreadsheet and is unlikely to survive the transition to a growing institutional market share.

Landlords worry too

Meanwhile, the second story is of Shelter and HSBC UK releasing research showing 40% of working people report sleepless nights over housing costs.

Apparently, 53% say housing bills have made them anxious in the past six months, and one in three are cutting back on food to cover their rent.

Don’t get me wrong, that distress is real, and it deserves to be taken seriously.

But landlords reading it will notice the framing gap.

A tenant facing rising costs may be able to seek additional work, financial support or cheaper accommodation, although none of those routes is easy or available to everyone.

A landlord facing higher mortgage payments, insurance and compliance costs must eventually increase the rent where permitted, reduce investment, absorb the loss or sell.

That asymmetry rarely features in the campaigning material aimed at this sector.

Was PRS reform needed?

The uncomfortable question raised by this week’s numbers is not whether the PRS needed reform.

It is whether the reform has delivered what was promised, or whether it has simply moved the same rents, and the same pressure on tenants, onto a different type of landlord altogether, one with considerably less reason to compromise.

We cannot disguise the fact that almost 850,000 homes have left the private rented sector.

The buildings have not vanished, but many are no longer available to tenants.

Meanwhile, the new supply entering the market is increasingly being provided by corporate operators charging institutional prices.

Tenants and their campaign groups wanted a fairer private rented sector; instead, they are getting a corporate invoice.

Until next time,

The Landlord Crusader

The post As private landlords disappear, who will replace us? appeared first on Property118.

View Full Article: As private landlords disappear, who will replace us?