The financial viability of private landlords in Britain is increasingly under scrutiny, according to Charlie Bryant, CEO of Zoopla and its parent company Houseful. In a candid interview with The Telegraph, Bryant highlighted the growing disillusionment among individual buy-to-let investors, who are facing a perfect storm of tax hikes, high mortgage costs, and increased bureaucracy.

“Put that into the context of the potential returns from alternative investments, whether that is bonds, the equity market or, frankly, putting your money with National Savings and Investments (NS&I), and the attractiveness of owning a rental property as an individual private landlord, buying it for yield, is not there,” Bryant told The Telegraph.

The removal of tax relief on buy-to-let mortgages and the 3% surcharge introduced on second homes in 2016 were pointed out as key factors making the sector less appealing. These measures have significantly eroded the profit margins for small-scale landlords, pushing many to reconsider their investments.

Bryant predicts that pension funds and private equity firms will step in to fill the gap left by departing private landlords, eyeing the build-to-rent sector as a lucrative opportunity. “Undoubtedly the next iteration [of the rental market] is, particularly with potential planning changes, will be larger, more corporate institutional landlords, under the build-to-rent guise,” he explained.

In addition to his analysis, Bryant proposed several reforms to improve the property market. These include shortening transaction periods and broadening access to Land Registry data, which would allow all parties involved to see comprehensive information about a property’s history, including hidden service charges.

As the landscape of the rental market evolves, Bryant’s insights suggest a significant shift from individual landlords to more substantial institutional players, driven by the changing economic and regulatory environment.