A major new survey conducted by Total Property has revealed a detailed and multi-faceted picture of the growing challenges facing the UK’s private rented sector. The research, which gathered responses from nearly 3,500 landlords, tenants and agents, paints a picture of a sector under increasing strain as it anticipates significant legislative changes with the forthcoming Renters' Rights Bill.
Total property is a market leader representing over 40% of the private rented sector. Its brands include government-approved schemes mydeposits, Property Redress and Client Money Protect, as well as award winning landlord insurance provider Total Landlord and housing law specialist, Landlord Action.
Key findings from the survey
Landlord sentiment:
- 67% of landlords believe the private rented sector has deteriorated, with nearly half planning to leave within five years
- 75% of landlords have been in the sector for over a decade with just 3% of landlords entering the market in the past year
- 58% of landlords have made eco-friendly upgrades, driven by tenant demand and regulations
Tenant experiences:
- 88% of tenants cite rising rents as their biggest challenge, with affordability being a critical issue
- Only 6% of tenants feel the right to request a pet is the most important provision of the Renters Rights Bill
Agent perspectives:
- Agents struggle with regulatory changes, with 76% citing compliance as a top concern
- 73.5% of agents feel less supported by the Labour Government than the previous Government
Landlords face regulatory and financial pressures
The survey revealed that 75% of landlords have been in the sector for over a decade, bringing a wealth of experience but also a sense that conditions are worsening. 67% believe the sector has declined citing growing regulatory and financial pressures. New investment is slowing, with just 3% of landlords entering the market in the past year.
Nearly half (49%) plan to exit within five years driven by concerns over:
- Regulatory changes, including the abolition of Section 21 (29%) and the Renters' Rights Bill (24%)
- Compliance burdens (34%), rising costs (19%) and tax changes (15%)
- Among those planning to exit, more than half cited frequent regulatory changes as a primary reason, including the abolition of Section 21 and the Renters' Rights Bill (24.3%). Compliance was identified as the biggest challenge by 34% of landlords
Most landlords (70%) own between one and five properties, making them particularly vulnerable to increasing costs and taxation. However, 58% have already made energy efficiency upgrades, driven by growing tenant demand for sustainable housing and regulatory requirements.
Tenants struggle with affordability and availability
Despite 64% of tenants feeling secure in their current homes, affordability remains a major issue:
- 68% of tenants spend between 31% and 70% of their income on rent
- 10% spend more than 71%, putting them at significant risk
- 49% say a lack of rental properties is making it harder to find a home
- Only 6% of tenants feel the right to request a pet is the most important provision of the Renters Rights Bill
The survey revealed that 64% of tenants feel quite or very secure. However, 27.5% reported insecurity in their housing situations. Affordability remains a dominant concern, with 68% of tenants spending between 31% and 70% of their income on rent, and 10% spending more than 71%. Rising rents were cited as the biggest challenge by 88% of tenants, followed by a shortage of properties (49%).
Cost (41%), location (28%), and condition (22%) emerged as the most important factors for tenants when choosing a property. Additionally, 74% of tenants reported satisfaction with the quality of their rental properties, reflecting positive experiences for many despite broader challenges.
The survey highlighted the desire for stability, with 65% of tenants having only rented their current property or one other. Main reasons for moving included work-related relocation, rent increases, eviction, and poor property conditions. Furthermore, 54% of tenants stated that their experiences had deteriorated their outlook on the private rented sector.
While 50% of tenants aspire to own property, many feel this is unattainable, with 58% citing affordability as the primary barrier. However, pet restrictions appear to be a minor concern, as only 15% of tenants would like a pet but are currently unable to have one and only 6% feel the right to request a pet is the most important provision in the Renters’ Rights Bill.
Agents tackle increasing regulation and supply shortages
Letting agents play a vital role in the rental market but face rising challenges:
- 76% cite regulatory changes as their biggest concern
- 61% highlight a shortage of rental stock
- 66% say recent legislation, including the Renters' Rights Bill and the Tenant Fee Ban, has negatively impacted their business
- 69% remain concerned about the abolition of Section 21
Agents, who serve as vital intermediaries in the private rented sector, face a range of challenges. The top three concerns identified by agents were keeping up with regulatory changes (76%), a shortage of rental stock (61%), and increased costs (46%). Energy efficiency requirements (33%) and finding good tenants (29%) were also significant challenges.
Legislative changes have had a substantial impact on agents’ operations, with 66% reporting that measures such as the impending Renters' Rights Bill and the Tenant Fee Ban have negatively affected their business. The abolition of Section 21 remains a key concern for 68.5% of agents, while 73.5% feel less supported by the current Government in addressing sector challenges.
Sustainability and supply shortages shape the future
Energy efficiency is an area of increasing focus in the private rented sector. The survey found that 58% of landlords have already made eco-friendly upgrades to their properties, responding to both regulatory pressures and tenant demand. Affordability and supply also dominate the discussion, with 49% of tenants identifying a lack of rental properties as a major challenge. Furthermore, the prospect of nearly half of landlords leaving the sector in the next five years adds urgency to calls for policies that address these supply shortages.
A rental sector at a crossroads
With landlords exiting, tenant affordability under strain, and agents grappling with increased regulation, the survey signals a sector in urgent need of stability.
Total Property’s CEO, Eddie Hooker, commented:
“The private rented sector is undergoing one of the most significant periods of change we’ve seen in decades. Rising costs, increasing regulation, and shifting tenant expectations are reshaping the market, and this survey reveals just how deep these challenges run. With nearly half of landlords considering leaving the sector in the next five years or reducing the size of their portfolio, and tenants struggling with affordability, urgent action is needed.
What’s particularly concerning is that the vast majority of landlords have been in the market for over a decade, while new investment has slowed to a trickle. The fact that so few new landlords are entering the sector is a clear indicator of where the market is heading.
While strengthening tenant rights through increased regulation is vital, on the other side of the coin, landlords have little incentive to reinvest in the market under current conditions. Unless this changes, these protections will mean little, as we risk a crisis where tenants have nowhere to rent at a price they can afford. Regulation must support both landlords and tenants fairly to strike the right balance and create a sustainable rental market for the future.”
Read the full survey report here.
