Despite frequent headlines
suggesting landlords are exiting the private rented sector due to rising costs
and tighter regulation, industry leaders argue that the reality is far more balanced.
For landlords who operate professionally and understand compliance as part of
the business, the current market continues to present strong opportunities.
Allison
Thompson, National Lettings Managing Director at Leaders, says the narrative of
decline does not reflect what many experienced operators are seeing on the
ground.
“For
those who run their portfolio as a professional business and take the time to
understand the ever-evolving market needs, or work with a qualified agent who
manages this properly, buy-to-let can still deliver solid returns.”
Demand Remains Strong Across the Private Rented Sector
One
of the clearest reasons professional landlords remain confident is sustained
demand for rented housing. The supply of homes in the private rented sector has
not kept pace with population growth, resulting in demand consistently
outstripping availability.
Official
data shows the proportion of UK homes in the PRS peaked at 20.3 percent in
2016–17 before falling to 18.8 percent by 2023. Over the same period, the UK
population increased by nearly 2.5 million people, many of whom rely on private
rented accommodation.
This
pressure has been intensified by ongoing shortages in social housing. Around
1.3 million households in England remain on waiting lists, alongside
approximately 139,000 in Wales. As a result, private landlords continue to play
a critical role in housing provision, with around one-third of renting
households receiving Universal Credit that includes housing support.
For
landlords, this imbalance often translates into shorter void periods, strong
tenant demand, and greater flexibility in tenant selection.
Rental Growth Continues to Outperform Historic Norms
Rental
values have continued to rise above long-term averages, further supporting landlord
confidence. According to the Office for National Statistics, average UK private
rents have increased at an annual rate exceeding 5 percent for more than three
consecutive years, with an overall average growth of 7.4 percent. This is
significantly higher than the historic average of around 2 percent.
Although
rental growth has moderated slightly, rents still rose by 5.7 percent in the 12
months to August, with increases of 5.8 percent in England and 7.8 percent in
Wales. Zoopla data also shows that rents have grown by 36 percent since 2020,
compared with house price growth of around 20 percent over the same period.
This
gap has helped improve yields and income returns for many landlords,
particularly those operating in high-demand locations.
Mortgage Conditions and Capital Growth Offer Stability
Falling
mortgage rates are also improving the outlook for landlords entering or
refinancing in the market. Those purchasing at current rates and refinancing
later may benefit from reduced monthly repayments as lending conditions
improve.
While
house price growth has been relatively subdued in recent years, long-term
capital appreciation remains an important stabilising factor. Land Registry
figures show prices have risen by around 1.5 percent over the past three years,
but gains from previous years continue to offset this slowdown and protect
long-term investment value.
Industry
leaders stress, however, that not every property will perform equally. Careful
research, location selection, and professional management remain essential.
Compliance Is Now the Defining Factor for Landlord Success
As
the Renters’ Rights Reform framework reshapes the private rented sector, the
key challenge for landlords is no longer demand, but compliance. Regulation has
become more detailed, enforcement more active, and penalties more severe.
Many
landlords who exit the market do so not because property is unviable, but
because they lack clear guidance on their legal responsibilities or fail to
adapt outdated practices.
This
is where professional education and structured compliance support have become
essential.
How AngelMoves Helps Landlords and Agents Stay Compliant
AngelMoves
focuses on property compliance education, supporting landlords and
letting agents to understand regulatory requirements clearly and operate
confidently within the law.
Rather
than reacting to enforcement action after mistakes are made, AngelMoves equips
landlords to prevent issues before they arise.
AngelMoves
helps landlords and agents to:
- Understand property compliance
requirements in plain, practical terms
- Stay aligned with current and
upcoming Renters’ Rights Reform obligations
- Avoid heavy fines, enforcement
notices, and legal disputes
- Prepare mandatory compliance
documents correctly and on time
- Advertise properties lawfully,
accurately, and in line with regulations
- Maintain professional standards
that protect income and reputation
By
educating landlords and agents on how to stay compliant, AngelMoves supports
long-term sustainability in a sector where professionalism is now
non-negotiable.
Looking Ahead
The
private rented sector is changing, but it is not collapsing. For landlords who
treat property as a business, stay informed, and prioritise compliance, the
fundamentals of demand, rental growth, and long-term value remain strong.
In
today’s market, opportunity still exists. It simply belongs to those who
understand the rules and operate accordingly.
Published: January 2026
Category: Landlord News | Lettings & Management
