The 2024 English Private Landlord Survey (EPLS) offers an in-depth look into the private rented sector, revealing the characteristics, practices, and attitudes of landlords across England. Commissioned by the Ministry of Housing, Communities and Local Government (MHCLG) and carried out by the National Centre for Social Research (NatCen), the survey provides a comprehensive picture of how landlords manage their portfolios and the motivations behind their rental activities.
One of the key insights of the report is a new segmentation of private landlords according to their business models. By categorising landlords based on factors such as the number of properties they own, their rental income, tenant types, and overall investment approach, the study sheds light on the diversity of landlord strategies. This segmentation also helps to understand differences between small-scale, often retirement-focused landlords, and larger, commercially driven operators.
The majority of private landlords in England own only a small number of properties. Almost half of the landlords surveyed held a single property, representing a modest proportion of tenancies, while a smaller group with larger portfolios accounted for nearly half of all tenancies. This highlights how concentrated tenancy provision can be among a few larger landlords despite the high number of small-scale owners.
From the survey, six distinct landlord types were identified. The first group, small-scale retired landlords, made up the largest proportion. They typically own one or two properties and rely on rental income as a supplementary source of retirement funds. These landlords generally operate with low levels of borrowing and view property investment more as a personal financial safety net than a commercial venture.
Small-scale short-term investor landlords formed another sizeable group. Unlike retired landlords, these individuals treat property as a strategic investment. They often maintain small portfolios and use Buy-to-Let mortgages, seeking either rental income or capital growth, though this is not their primary source of income.
Similarly, small-scale investors for retirement primarily see property ownership as a way to support their pension. They generally hold only a few properties, have low rental income as a proportion of their overall income, and are less focused on capital growth. Despite these differences, this group still plays an important role in the private rental market.
Moderate-scale business and investor landlords represent a bridge between investment-focused and business-oriented approaches. They see their role as both an investment and an active business, often participating in professional property organisations. Their rental income makes up a significant portion of their overall earnings, reflecting their more engaged approach to property management.
Large-scale business landlords are professional operators who treat property as a primary enterprise. They tend to manage extensive portfolios and are more likely to rent to tenants receiving housing support. This group views their role primarily as a business rather than an investment, demonstrating a high level of commercial focus and operational sophistication.
Corporate landlords, operating at the institutional level, manage sizeable property portfolios and generate substantial revenue from rentals. Unlike individual landlords, they operate as companies, often employing professional teams to manage their properties efficiently. This segment represents the most professionalised end of the market.
Rent-setting practices varied significantly across landlord types. Larger and corporate landlords were more likely to align rents with market rates and to adjust rents at tenancy renewals. Smaller landlords, particularly retired investors, were less inclined to increase rents and more likely to keep them stable. Cost recovery, such as offsetting renovation or energy improvements, was also a more common factor for moderate and large-scale landlords when determining rent.
Property maintenance practices highlighted further differences. Identification of damp and properties with lower energy efficiency ratings were more frequently reported among landlords with larger portfolios. Regardless of size, most landlords took similar steps to address maintenance issues, with fixing the source of damp being the most common action.
The use of deposit replacement schemes and tenant guarantees showed limited adoption overall but varied by landlord type. Larger landlords and corporate operators were more likely to request guarantors or use alternative deposit schemes, whereas small-scale retired landlords tended to request rent in advance more often. Across all types, landlords remained cautious about letting to tenants with a history of arrears or those receiving housing support, citing concerns over late or unpaid rent.
Looking ahead, landlord intentions for their property portfolios differed by scale. Corporate landlords were most likely to plan portfolio expansion, while half of large-scale business landlords anticipated selling or reducing their holdings. Smaller-scale landlords, including retired investors, mostly planned to maintain the same number of properties. Recent tax and legislative changes influenced these decisions, with larger landlords more affected by policy adjustments than smaller ones.
The survey also considered the potential impact of upcoming legislation, such as the Renters (Reform) Bill at the time of data collection. Larger and business-focused landlords were more likely to factor proposed reforms into their future plans, while smaller landlords were less influenced. This demonstrates how policy changes can have a differential impact across landlord types.
In conclusion, the EPLS 2024 provides a detailed snapshot of England’s private rented sector, highlighting the diversity in landlord approaches, motivations, and practices. From small-scale retirement investors to corporate landlords, each group exhibits distinct behaviours and attitudes, influenced by portfolio size, income dependency, and regulatory changes. Understanding these differences is crucial for shaping policy and ensuring a balanced, well-functioning rental market.
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