Market & Opinion
In defence of private landlords in the UK
Written by the August editorial team. Published: October 2025. Last reviewed: May 2026
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, though growth is easing from the peaks seen earlier in 2025. According to the ONS Price Index of Private Rents, average UK private rent reached £1,377 in the 12 months to March 2026, up 3.4% year-on-year. In England, average monthly rent stood at £1,434; in Wales, £830; in Scotland, £1,022. The slowdown from the 5–6% annual growth rates recorded in mid-2025 reflects improving affordability pressures, though rents remain supported by a persistent shortage of available properties.
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. The landlords who come to us are typically not the rogue actors described in headlines, they are people who have bought a property as a pension supplement and are genuinely trying to navigate an increasingly complex compliance environment. Our free landlord calculators and free landlord templates exist precisely because the demand for straightforward, practical guidance is so high. 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 a surge in landlords incorporating. According to Hamptons' analysis of Companies House data, a record 66,587 buy-to-let companies were formed in 2025, an 8% rise on 2024 and a 363% increase over the past decade. By the end of the year, 443,272 buy-to-let companies were active across the UK, nearly five times the 91,278 recorded in 2016.
The momentum has carried into 2026, with new incorporations running 11% ahead of the same period last year. Today, around 75–80% of all new buy-to-let purchases are made through a limited company structure.
This shift reflects how individual landlords are adapting to survive in a harsher tax environment, paying corporation tax at 19% or 25% has become more attractive than income tax at 40% for many higher-rate taxpayers.
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 Renters' Rights Act 2026 is the most significant reform to the private rented sector in decades. It came into force on 1 May 2026, abolishing Section 21 no-fault evictions and converting all tenancies in England to rolling periodic contracts. The legislative set up is already complicated by nation with different landlord laws by region.
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. Also see our article on why Private Landlords are quitting in 2025.
The impact is already visible. Recent RICS Residential Market Survey data continues to show landlord supply under pressure. 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, the small private landlords we work with are notably more flexible than their institutional counterparts. They are more likely to let to families, accept tenants on benefits, or allow pets and in our experience, they often develop long-term relationships with tenants that bear no resemblance to the exploitative dynamic the media sometimes portrays. 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.
Author
August Team
The August editorial team lives and breathes rental property. They work closely with a panel of experienced landlords and industry partners across the UK, turning real-world portfolio and tenancy experience into clear, practical guidance for small landlords.
