In defense of private landlords

Some parts of the media have been vilifying small landlords of late. But this argument lacks an understanding of the importance of the sector and the individuals within it.

Private landlords play a vital role in the UK housing market, yet the debate about their contribution has become increasingly polarised. In the press and in politics, landlords are often portrayed as opportunistic profiteers driving up rents and exploiting tenants. While there are certainly small pockets of poor practices across the sector that deserve scrutiny, this portrayal is far from the whole truth on the market.

The reality is that private landlords in the UK provide homes for millions of people, stepping in where the state and large institutions fall short. In 2023–24, the private rented sector (PRS) in England housed 4.7 million households or 19% of all households. This share has doubled in the last two decades, as more people rent long term due to rising house prices and limited social housing.

At the same time, rents have continued to rise. The average UK private rent stood at £1,348 in August 2025, up 5.7% year-on-year. In England, it was £1,403 (+5.8%), in Wales £811 (+7.8%), and in Scotland £1,002 (+3.5%). Importantly, growth is easing from the peaks earlier in 2025.

Many landlords are not corporations or large-scale investors. They are teachers, nurses, tradespeople, or retirees who see property as a pension plan. Almost half of landlords (45%) own just one rental property, and these single-property landlords account for 21% of tenancies.

This article explores the importance of the sector, the challenges facing private landlords, and why a fairer, more balanced debate is overdue.

The role of Private Landlords in the UK

The PRS is not a niche segment. It provides the backbone of housing for many groups. Students, young professionals, families seeking flexibility, and older people who prefer not to own all rely on it. Without private landlords in the UK, these households would face even more acute housing pressures.

The profile of tenants is more diverse than stereotypes suggest. Around 34% of PRS households include dependent children, roughly 1.6 million families. This means landlords are not just providing short-term accommodation, but long-term homes where children grow up and go to school and around them communities are formed.

Far from being absentee profiteers, many landlords are embedded in their local areas. They hire local tradespeople for repairs, work with letting agents on finding new tenants, and invest in property maintenance and upkeep. The sector supports hundreds of thousands of jobs and channels millions into local economies.

Why the media narrative feels one-sided

The media often highlights rogue landlords, unsafe homes, or cases of eviction. These stories deserve exposure, but they create the impression that all landlords behave badly. In reality, most operate responsibly.

Survey data shows that on their most recent let:

• 91% of landlords provided an EPC

• 86% inspected for fitness,

• 79% performed Right to Rent checks, and

• 68% provided the government’s “How to Rent” guide.

Such figures demonstrate that the vast majority are compliant with the law and take their responsibilities seriously. The reality is more nuanced than the headlines.

At August, we see this every day. Landlords come to us looking for practical support, for example, our free landlord calculators and our free landlord templates (including the compliance tracker) helps keep them in the know them stay on top of ever changing requirements. The fact that tools like this are so popular shows how seriously landlords take compliance.

The challenges facing Private Landlords

While landlords are often painted as powerful, the truth is that many small landlords are under significant strain. The challenges facing private landlords today come from multiple directions and are real.

1. Regulatory burden

The rules governing rental properties have multiplied. From gas safety checks to electrical inspections and selective licensing schemes, the landscape is complex and constantly evolving. It further depends on where you are in the country and which council the property falls within. For landlords who own just one property, the pace of change is daunting.

Energy efficiency standards are a particular challenge. Nearly half of landlords (47%) have at least one property at EPC D or below, and 14% have a property rated E, F, or G. Upgrading homes is essential, but the cost is significant and support limited. See our EPC Improvement Calculator.

2. Tax changes and structural shifts

The withdrawal of mortgage interest relief and the introduction of a stamp duty surcharge have cut into returns. Many landlords now operate with thinner margins than ever before.

One result has been the surge in landlords incorporating. In September 2025 alone, 6,493 buy-to-let companies were formed, bringing the total for the first nine months of the year to over 51,000, the highest on record. Across the UK, there are now almost 390,000 active buy-to-let companies, up from 60,000 new incorporations in 2024. This shift reflects how individual landlords are adapting to survive in a harsher tax environment.

3. Rising costs

Inflation has pushed up the price of repairs, building materials, and professional services. Mortgage rates have risen sharply too, adding pressure.

Although rental growth has helped landlords in some areas, the pace is uneven. Growth slowed from 6.7% in June 2025 to 5.7% by August 2025. Landlords cannot always pass costs on to tenants, especially in lower-demand areas or often within rental periods.

4. Legislative uncertainty

The forthcoming Renters’ Rights Bill is the most significant reform in decades, which will abolish Section 21 and introduce rolling periodic tenancies. Guidance suggests it will not commence until early 2026 at the earliest.

While landlords generally support fairness, the constant uncertainty makes planning difficult. Should they invest in improvements now or wait? Should they expand portfolios or sell? The lack of clarity breeds hesitation. The more uncertainty leads landlords to consider investment yields outside the sector too.

5. Tenant arrears and disputes

The cost-of-living crisis means more tenants struggle with rent. Yet 80% of landlords report no tenants in arrears, and for single-property landlords the figure rises to 91%. This undercuts the idea that arrears are universal.

Nevertheless, arrears remain a real risk. In Q2 2025, there were 11,270 buy-to-let mortgages in arrears, though this was 5% fewer than the previous quarter.

For landlords caught in disputes, legal processes can be slow and stressful. Our guide on how to handle deposit disputes fairly gives practical advice on navigating these tensions without escalating conflict.

Why supporting small Landlords matters

The cumulative effect of these pressures is that many landlords are leaving the sector. In fact, 31% of landlords said they plan to reduce their property holdings over the next two years, with 16% planning to exit entirely, compared to just 7% planning to increase.

The impact is already visible. The September 2025 RICS survey reported landlord instructions at a net balance of –38, close to record lows outside lockdown periods. With supply shrinking, surveyors expect rents to rise further in coming months.

When small landlords leave, it is tenants who suffer. Fewer properties mean higher rents, less choice, and more competition. Social housing cannot absorb this demand, and large institutional landlords focus narrowly on high-yield city developments.

By contrast, small private landlords in the UK are more flexible. They are more likely to let to families, accept tenants on benefits, or allow pets. For example, carrying out regular inspections helps landlords and tenants maintain good relationships. Our guide on rental property inspections explains how.

Towards a more balanced debate

A healthier conversation about the rental sector would acknowledge both sides. The difficulties tenants face, but also the challenges facing private landlords.

Policymakers should focus on:

• Clear, proportionate regulation – rules that are easy to understand and apply.

• Tax policy that rewards investment – especially landlords who reinvest in energy efficiency and improvements.

• Efficient dispute resolution – faster, less adversarial processes for arrears and disagreements.

• Support for energy efficiency upgrades – grants and incentives to help landlords decarbonise without exiting.

The September 2025 RICS data also showed that new vendor instructions dropped to their lowest since August 2023 amid Budget uncertainty. This demonstrates the fragility of the current system. Uncertainty discourages both buyers and landlords, compounding the supply squeeze. Smaller supplier leads to higher rents.

Conclusion

Private landlords in the UK are not villains. They are essential contributors to the housing system, providing homes for millions of households. The debate about their role has become too simplistic, casting them as obstacles when they are in fact part of the solution.

The challenges facing private landlords are real: rising costs, regulatory complexity, tax changes and legislative uncertainty all weigh heavily. If more landlords are forced out, the result will be fewer properties and higher rents.

A fairer conversation is needed. By supporting responsible landlords with clear rules, proportionate tax, and practical tools, policymakers and society can ensure the rental sector works better for everyone.

If you are a landlord navigating these pressures, August provides resources to help you stay compliant, manage tenants effectively, and protect your investment. Explore our leading property management app August.