Small-scale landlords squeezed out of private rental market

Small-scale landlords squeezed out of private rental market

A new survey shows more consolidation in the landlord market, with medium and large scale portfolios gaining ground.

A Deposit Protection Service (DPS) survey of 1,000 private landlords shows that the proportion of landlord respondents owning one or two properties fell by

seven percentage points, from 57% to 50%, between October 2024 and October 2025.

Over the same period, the share of landlord respondents with three to five properties increased from 27% to 31%.

The report also shows that the proportion of landlord respondents owning 11 or more properties rose by three percentage points, from 5% to 8%.

The share of landlord respondents with six to 10 properties remained stable at 11%.

More than a third of landlord respondents (36%) said rental income was their main source of income.

But a majority of landlord respondents (56%) said rental income was not their primary source of income.

Just 5% reported operating via limited companies.

Around three in 10 landlord respondents (28%) said they continue to let properties as individuals or sole traders.

Matt Trevett, DPS managing director, says:  “Smaller landlords now account for a shrinking share of the market, while medium and larger portfolios are becoming more prominent.

“At a time of ongoing economic pressure and regulatory change, the data suggest the sector is continuing to consolidate.”

The report is available here: https://www.depositprotection.com/documents/prs-review-feb-

2026.pdf

This article is taken from Landlord Today