A fresh analysis of public revenue data has revealed that the number of landlords in England fell by 1.04 per cent over the past year — a drop driven largely by the withdrawal of individual, smaller-scale landlords. The data, compiled by lettings service Dwelly using figures released in August, shows that in 2023/24, 2.86 million individuals declared rental income, down from a five-year high of 2.89 million in 2022/23.
While the decline might appear modest in percentage terms, the shift is symbolic: it signals the fragility of landlord confidence amid looming regulatory upheavals, rising costs, and shifting regional dynamics.
Regional Patterns: From Wales to London
The contraction is not uniform across England. Dwelly’s breakdown indicates that Wales saw the steepest annual retreat among landlords, down 2.7 per cent. Other regions hit hard include Yorkshire and the Humber and the South West, both down 1.6 per cent, with Northern Ireland and the North East declining by 1.5 per cent. The South East saw a drop of 1.3 per cent. Yet London bucks the trend: it was the only region to see an increase — rising 0.4 per cent to about 474,000 landlords, according to the data. Some areas, including the West Midlands, Channel Islands and Isle of Man, remained relatively stable.
This divergence points toward different pressures on landlords depending on region: affordability, local property markets, demand, and regulatory enforcement vary significantly.
Who’s Leaving — and Why?
Dwelly suggests that it is “amateur” landlords — those with one or a few rental properties rather than full-fledged portfolios — who are most vulnerable to exit. These owners often lack the scale, capital buffer or management infrastructure to absorb shocks, legal complexity, or increased compliance costs.
Multiple indicators support this narrative:
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A survey of 250 letting agents found 34 per cent reported an increase in independent landlords selling up, while 93 per cent said they were concerned about losing such clients. Mortgage Professional
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High mortgage rates, higher energy standards, escalating compliance burdens and tax changes are putting pressure on small-scale landlords, making them more susceptible to market exit.
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Dwelly’s review implicitly underscores that while large corporate or institutional landlords may be better placed to absorb a regulatory shake-up, individuals with limited portfolios are more likely to capitulate.
One Dwelly spokesperson commented:
“Such a significant shake-up is inevitably going to push some landlords from the sector … they simply don’t have the resources to pivot with such monumental changes.”
The Regulatory Overhaul: What Landlords Are Bracing For
A key driver behind this exit is growing uncertainty over the Renters’ Rights Bill, proposed by the current Labour government. The Bill promises one of the most radical rewrites of landlord–tenant law in decades. Key features include:
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Abolition of Section 21 no-fault evictions: Landlords will no longer be able to evict tenants without reason after the end of a fixed term. Wikipedia+3GOV.UK+3Shelter England+3
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Replacement of assured shorthold tenancies with open-ended periodic tenancies, applying to both new and existing leases from “day one.” Lewis Nedas+2GOV.UK+2
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Stricter rent control mechanics: landlords will only be able to raise rents once per year, using a Section 13 notice, subject to challenge at tribunal. Lewis Nedas+3Mayer Brown+3Letting a Property+3
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Requirement for landlords to register and join a Property Portal / database, with a Landlord Ombudsman to oversee disputes and compliance. Mayer Brown+2GOV.UK+2
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Enhanced tenant protections, including preventing discrimination of tenants on benefits or with children, and banning “bidding wars” for rental properties. GOV.UK+2Letting a Property+2
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Tighter possession grounds through Section 8, with some eviction routes widened (e.g. landlord moving in, selling the property) — but always via court hearing and not via no-fault mechanisms. Excello Law+3Lewis Nedas+3Letting a Property+3
These proposed changes have created acute anxiety among landlords, particularly smaller ones. Many fear that the combination of longer, more contested evictions; stricter standards; and tighter rent flexibility will make letting less viable. Landlord bodies have warned that supply may contract and rental costs may rise as risk premiums grow.
To illustrate how the application will shift: once Section 21 is abolished, landlords will have to rely entirely on Section 8 grounds to evict tenants, even in cases of non-payment or sale. totallandlordinsurance.co.uk+2Excello Law+2 Moreover, some argue that courts may struggle to cope with the extra case volume this mandates. totallandlordinsurance.co.uk+2Shelter England+2
Other reforms under discussion include longer notice periods (e.g. four months for many eviction grounds) and limits on re-letting after eviction under certain grounds (the so-called “no reletting” period). Lewis Nedas+3Shelter England+3GOV.UK+3
Observers suggest that in the current climate, some landlords are accelerating their exit strategies before the full impact hits. Lendlord+2Mortgage Professional+2
Eviction Trends & Homelessness Pressures
The debate over Section 21 is far from abstract — it sits squarely at the intersection of housing instability and legal reform. No-fault evictions have been a significant driver of homelessness in recent years:
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In the first quarter of 2024, 2,682 households were evicted by bailiffs under Section 21 — a 19 per cent rise year-on-year and the highest in six years. Shelter England+1
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During the same period, 7,863 landlords initiated Section 21 proceedings, up 15 per cent over the prior year. Lendlord+3Shelter England+3CIEH+3
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Since April 2019 — the year the previous government first promised to end Section 21 — over 108,854 households have been served no-fault notices in England, and 34,738 evicted by bailiffs. Crisis+2Shelter England+2
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Homelessness charities routinely cite Section 21-driven evictions among the main causes of housing precarity. For instance, between 2019 and mid-2023, statutory homelessness assistance was threatened 84,650 times as a direct result of Section 21 notices — an average of 52 households per day. Homeless Link
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In 2023 alone, 25,180 households were threatened with homelessness due to Section 21 notices, up from 18,750 in 2019. Financial Times+2Shelter England+2
These data underscore how deeply intertwined landlord behaviour and tenant security are. If removals accelerate and exits from the landlord base intensify, reduced supply and rising rents could exacerbate the risk of homelessness for vulnerable tenants.
What Comes Next — And Who Could Be Left Behind?
With the Renters’ Rights Bill nearing its final legislative stages, the sector is at a crossroads. According to Shelter England, the Bill is now in the final “ping-pong” phase (i.e., negotiating amendments between the Commons and Lords) and could become law by late 2025. Shelter England+1 But key elements are still being contested:
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Peers in the House of Lords have already introduced amendments that may weaken tenant protections — for example raising the evidentiary threshold for imposing fines on bad landlords. Shelter England+1
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The “no reletting” period has been reduced in some versions from 12 to 6 months, potentially opening loopholes for indirect evictions. Shelter England
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The enforcement burden on local authorities remains a flashpoint — some proposals require proving misconduct “beyond reasonable doubt,” which advocates warn may blunt regulatory teeth. Shelter England+1
Once enacted, the Bill will not necessarily apply immediately — a “commencement date” will follow Royal Assent, giving stakeholders time to adjust. Lewis Nedas+2GOV.UK+2 Some drafts suggest at least six months’ notice before most provisions come into effect. Lewis Nedas
Who will suffer most? The signs point to smaller, part-time, “accidental” landlords. Those without the financial buffer or scale to absorb transitional uncertainty are likeliest to divest. Larger-scale or institutional landlords may weather the storm — or even see opportunity in reduced competition — but they too face rising compliance and litigation risk.
For tenants, the reforms may afford stronger protection, but only if supply remains sufficient and enforcement is robust. Some also worry about “backdoor evictions” through steep rent hikes or sale clauses, which critics say must be heavily regulated. The Guardian+2UK Parliament Bills+2
Final Word
The fall of 1.04 per cent in landlord numbers may appear modest — but it illuminates deeper stress lines in England’s private rental sector. A convergence of rising costs, regulatory uncertainty, and legislative disruption is squeezing the “marginal” landlords, pushing many to exit. The next 12 to 18 months may prove decisive: if supply contracts further, tenants will face higher rents and fewer options; if reforms are strong and enforced, the sector may stabilise at a new equilibrium.
In other words, this is not just a story about landlords leaving — it is a harbinger of whether England can balance tenant rights, supply, and confidence in a transformed rental landscape.