As more landlords head for the exit, agents hold the key to a thriving PRS

by Craig Vile

You may have witnessed that your landlords are feeling rather despondent of late. An increasing number are leaving the private rented sector, placing additional strain on an already struggling market. But could agents like you hold the key to a turnaround in fortunes and bring confidence back to the sector?

The current situation

There’s no denying that landlords are worried. Research from TwentyEA, published earlier this year, showed that 15.6% of all new instructions in the first quarter of 2025 were previously rental properties. In the preceding quarter, 12.2% of all new instructions had previously been rented at some point in the previous three years and once sold only 2.9% were subsequently let in Q1 2025, meaning only a small proportion were purchased by other landlords.

Costs and the burdens of regulatory compliance are worrying landlords, with another survey by Spareroom earlier this year finding that seven out of 10 landlords said their reduced ability to make a profit on rental homes was forcing them to leave. Meanwhile, a third survey this time from the Deposit Protection Scheme, said that nearly 90% of landlords blamed changing laws or tax implications for why they were selling. By being proactive you can help to manage such fears and stop landlords from leaving.

How you can help:

Educating around regulation change

Many landlords are choosing to leave ahead of the implementation of the Renters’ Rights Bill. The bill’s aim is to increase standards in the sector, drive out unscrupulous landlords, and provide more certainty for tenants.

That’s a good thing but the scale of change can feel overwhelming for landlords. Helping them to understand what they need to do and how the market will change is essential to boosting their confidence so that they can still survive and thrive.

Compliance guides and webinars will help them keep track of their changing obligations and to comprehend the changes – particularly around issues such as the end of Section 21 no-fault evictions and changes to tenancy structures. This helps to educate them that the changes are intended to boost the standards within the sector, rather than a tactic to drive them out. It also reinforces your role as an expert - there to help.

Supporting regulatory compliance

Landlords are also fearful of fines and penalties imposed for non-compliance with the changing regulations which can run into tens of thousands of pounds. Offering audit services to ensure compliance, especially around additional regulations, such as the Decent Homes standard or Awaab’s Law, both of which are also due to come into force later this year, will help to calm their nerves and reduce their risk.

Helping them to set the right rents first time

At a time when costs remain high but greater rent controls, such as an end to rental bidding and more limited rent increases are due to come into force, setting the right rent at the outset is crucial. With proof of local market rents and experience in handling such negotiations, you can help landlords to maximise the money they make.

Perfect matchmaking

The end of Section 21 evictions will change how landlords regain control of their properties so choosing the right tenant becomes even more important than before. Helping to find and vet tenants on their behalf is yet another weight off their shoulders.

Identifying future opportunities

Rental demand remains high even if some landlords are leaving the market. This means more opportunities for those landlords who are still acquisitive and want to expand their portfolios. By using your knowledge of the market, you can help advise landlords on opportunities that will help to grow their business further.

 

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