England’s private rented sector is expected to grow by around 500,000 households over the next decade, according to government projections published as part of its impact assessment on extending Awaab’s Law to privately rented homes.
The forecast suggests that demand for private rental accommodation will continue to rise, with the number of households renting privately expected to exceed five million before the end of the decade. However, the government has also acknowledged that gaps in the available data make it difficult to predict how the number of landlords will change over the same period.
Private Rental Households Expected to Exceed Five Million by 2029
The government’s impact assessment estimates that England had approximately 4.83 million privately renting households in 2026.
Based on its projections, the number of households in the sector is expected to increase by around 1.2% annually. This would take the total beyond five million by 2029, before reaching an estimated 5.38 million in 2035.
If these forecasts prove accurate, the private rented sector will accommodate significantly more households over the coming decade. This growth could have implications for landlords, tenants and policymakers as they respond to changing housing needs and the requirements placed on rental properties.
The figures appear in the government’s assessment of plans to extend Awaab’s Law to the private rented sector. The legislation is intended to strengthen protections for tenants by requiring landlords to address certain hazards within specified timeframes.
Extending the rules to private rentals could mean more landlords need to review their property management procedures, particularly when responding to reports of damp, mould and other qualifying hazards.
Government Admits There Is Uncertainty Around Landlord Numbers
Although the projections point towards continued growth in private renting, the government has warned that there are limitations to the information available about the people and businesses providing rental accommodation.
The latest landlord figures cited in the assessment date from 2019–20, when England had approximately 2.3 million landlords.
The government acknowledges that the available evidence is insufficient to establish reliable trends in landlord numbers. As a result, its modelling assumes that the number of landlords will remain broadly stable, but it recognises that this assumption is uncertain.
This distinction is important because an increase in the number of privately renting households does not necessarily mean that the sector will see a similar rise in the number of individual landlords.
For example, the same landlord could own several rental properties, while other landlords might sell their portfolios or leave the market altogether. The number of households renting privately could therefore rise even if the overall number of landlords changes very little.
Without more recent data, it is difficult to establish precisely how ownership patterns might evolve over the next decade.
Could New Regulations Lead to Greater Consolidation?
The government also highlights the possibility that the private rented sector could become more consolidated over time.
In its assessment, it suggests that some landlords may seek to benefit from economies of scale when undertaking remediation work. In practice, this could mean larger landlords managing more properties and spreading certain compliance and repair costs across a bigger portfolio.
This possibility is relevant as landlords prepare for changes to their legal responsibilities, including the proposed extension of Awaab’s Law.
Meeting new requirements could involve reviewing reporting procedures, responding to repair requests more quickly and ensuring that qualifying hazards are investigated and addressed within the required deadlines. Depending on the property and the work involved, landlords may also face additional maintenance and remediation expenses.
Larger operators may be better placed to organise these processes across multiple properties. Smaller landlords, meanwhile, may have fewer resources available to manage unexpected repair bills or changes to compliance requirements.
However, the government’s reference to consolidation is a possible outcome rather than a confirmed prediction. The assessment does not establish how many landlords might expand their portfolios, sell properties or leave the sector as a result of the changes.
What Could the Forecast Mean for Landlords?
The projected increase in privately renting households suggests that the sector will continue to play an important role in meeting England’s housing needs.
For landlords, the expected growth could indicate ongoing demand for rental accommodation. However, the outlook will also depend on factors such as property prices, borrowing costs, rental affordability, maintenance expenses and future regulation.
The extension of Awaab’s Law adds another consideration for landlords who need to ensure their properties meet the relevant standards and that tenant reports are handled appropriately.
Landlords may therefore need to assess whether their existing systems are sufficient to manage repairs, document communications and meet applicable deadlines. Those with larger portfolios may also need to consider how they organise maintenance work across multiple properties.
At the same time, the government’s uncertainty around landlord numbers means it remains difficult to predict how the sector’s ownership structure will change. More up-to-date information would help provide a clearer picture of whether the market is becoming more concentrated or continuing to be dominated by smaller landlords.
A Growing Sector With an Uncertain Future
The government’s forecast points to a private rented sector of approximately 5.38 million households by 2035, representing an increase of around 500,000 from the estimated 2026 figure.
However, the projections should be viewed alongside the government’s own warning that the evidence on landlord numbers is limited. While the number of renting households is expected to rise, the number of landlords providing those homes may follow a different pattern.
The possibility of consolidation also raises questions about how landlords will respond to changing costs and regulatory responsibilities, particularly as new requirements are introduced.
For now, the forecast provides an indication of the potential scale of England’s private rented sector over the next decade, but the longer-term picture will depend on how the market develops and how landlords adapt to the changing regulatory environment.
Read the full government impact assessment: Extending Awaab’s Law to private rented tenancies and licences.
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