The UK’s private rented sector (PRS) is shrinking. While the total value of UK housing rose by 3.8% last year, the PRS fell by 5.1% – marking three consecutive years of decline and a £79bn reduction since 2022.
However, landlord sales do not automatically mean homes leave the sector – more than a quarter are sold with sitting tenants, and around 30% are purchased by other landlords.
However, the overall direction of travel still points to a shrinking PRS, with a significant share moving into owner-occupation, including 34% bought by first-time buyers and 29% by other residential buyers.
As the PRS evolves and regulation increases, professional agency support is becoming essential to help landlords navigate change and the Renters’ Rights Act. Source: PriceHubble, Savills, Pegasus Insight. Note the balance of sales are either unknown or a buyer that falls outside these main groups like property developer or temporarily empty properties.