The Death of the Family Landlord: Why Small-Time Landlords Are Disappearing—and What It Means for Tenants

For decades, small, family-run landlords were the backbone of the UK’s rental market.

These landlords—whether they owned one property or a handful—played a vital role in providing affordable, well-maintained homes to millions of tenants. Many saw it as a way to invest for the future, offer housing to local communities, and build a small nest egg.

But that era is coming to an end. Small-time landlords are disappearing at an alarming rate, squeezed out by punishing taxes, growing regulations, and rising costs. And it’s not just landlords who are feeling the pressure—tenants are also paying the price.

The Landlord Exodus: Why Small Landlords Are Leaving

At the heart of the exodus is a series of government policies that have made it increasingly difficult for small landlords to remain profitable. The most damaging of these is Section 24, which limits landlords’ ability to deduct mortgage interest from their rental income. This change has turned once-profitable businesses into financial burdens for many family landlords.

Mark and Lucy are a couple who’ve been renting out their two-bedroom flat in Nottingham for nearly a decade. It was part of their retirement plan—steady income with minimal stress. But after Section 24 was introduced, they saw their tax bills rise dramatically. With rent prices unable to keep up with their rising costs, Mark and Lucy had no choice but to sell their rental property.

They’re not alone. Thousands of small landlords like Mark and Lucy are exiting the market, no longer able to cover their costs.

Regulation Overload: Drowning in Red Tape

Beyond tax burdens, small landlords are being forced to comply with a growing list of regulations. From energy efficiency upgrades to tenant eviction rules, the pressure to meet compliance is taking its toll—particularly on landlords who own older properties.

Angela, a landlord with a Victorian property in London, has found herself struggling to keep up with new energy efficiency requirements under Minimum Energy Efficiency Standards (MEES). The cost of bringing her property up to the required standard would run into tens of thousands of pounds. Unable to shoulder the financial burden, Angela is now selling her property and stepping out of the rental market altogether.

Many small landlords, like Angela, feel that they’re being pushed out by regulation overload—leaving the rental market increasingly dominated by larger corporate landlords.

The Impact on Tenants: A Changing Landscape

So, what does this mean for tenants? The loss of family landlords is already having a profound impact on the UK’s rental market. Tenants who used to enjoy personalised service, fair rents, and long-term stability are now finding themselves faced with fewer options, higher prices, and less flexible terms.

Tom and Sarah, a young couple in Birmingham, rented from a family landlord for years. Their landlord was flexible with payments and quick to fix any problems that came up. But when he decided to sell, Tom and Sarah had to move—and what they found was a very different rental market. Their new flat, owned by a corporate landlord, came with a higher rent, stricter terms, and a faceless management company that was slow to respond to maintenance requests.

This shift is happening across the UK, as family landlords leave and corporate landlords take over. With fewer independent landlords in the market, tenants are finding it harder to secure affordable, well-maintained homes. And as rental supply tightens, rents are rising—making it even more difficult for tenants to save for a home of their own.

The Decline of Local Communities

Beyond the immediate impact on tenants, the disappearance of small landlords is also affecting local communities. Family landlords often lived in or near the communities where their properties were located. They were invested in maintaining the quality of their properties and neighbourhoods, often taking pride in contributing to local housing solutions.

With the rise of corporate landlords, many of these properties are now managed by remote companies with little connection to the local area. This shift can lead to a decline in neighbourhood care, as corporate landlords are often more focused on maximising profits than maintaining community standards.

Paul, a landlord who grew up in Sheffield, has been renting out his childhood home for years, ensuring it remains part of the community. But after struggling with rising costs and increasing regulation, Paul is now selling the home to a property investment group. “It feels like part of the neighbourhood is being lost,” Paul says. “It’s not just about the house—it’s about the community that I’ve been part of for years.”

As more small landlords like Paul leave the market, the fabric of local communities begins to fray, with long-term residents displaced and local pride eroded.

What Does the Future Hold for Small Landlords?

The future for small, family-run landlords looks increasingly uncertain. Without meaningful reform, many more landlords will be forced to leave the market, accelerating the shift toward corporate control and leaving tenants with fewer options.

So, what can be done to stop this exodus? Here are a few key steps that could help save the family landlord:

1. Tax Reform: Scrapping or reforming Section 24 would provide immediate relief to landlords who are struggling with rising tax bills. This change alone could keep many small landlords in the market.
2. Simplified Regulations: While tenant protections are essential, the burden on small landlords is growing unsustainable. Streamlining regulations and offering support—such as grants for energy efficiency upgrades—would help small landlords meet their obligations without being forced out.
3. Incentivise Long-Term Tenancies: The government should offer tax breaks or other incentives to landlords who provide long-term tenancies. This would encourage landlords to stay in the market and give tenants greater security.
4. Support for Local Landlords: Special grants or incentives for local, family-run landlords could help them remain competitive against larger corporate players. This would preserve the personal service and community investment that small landlords bring to the table.

Support Property118 in the Fight to Save Small Landlords

At Property118, we’re fighting to protect small landlords and keep them in the market. We believe that independent landlords play a vital role in providing affordable, personalised housing for tenants—and that their disappearance would be a tragedy for both tenants and local communities.

But we need your help to keep fighting. If you believe in protecting small, family-run landlords and ensuring a diverse rental market, please consider supporting Property118. Your donations will help us campaign for the tax and regulatory reforms needed to keep small landlords in the game.

Every donation counts. Use the form below to help us fight for the future of small, independent landlords and a fairer rental market for everyone.

The death of the family landlord doesn’t have to be inevitable. With your support, we can stop the exodus and preserve a diverse, affordable, and community-focused rental market for both tenants and landlords.

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