Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.

Call for Rent Controls as Smaller Landlords Quit the PRS

Smaller landlords are leaving the private rented sector, but their departure is not reducing the number of homes available to rent, according to a new analysis. The Joseph Rowntree Foundation says the evidence does not support claims that the private rented sector itself is shrinking, and argues that rent controls should be introduced without delay.

What the report says

An analysis reported by Property118 has found that while smaller landlords are quitting the private rented sector, the overall supply of homes available to rent is not being reduced as a result.

The Joseph Rowntree Foundation, cited in the analysis, states that claims the PRS itself is shrinking are not supported by the evidence. On that basis, the Foundation is calling for rent controls to be introduced without delay.

What it means for letting agents and inventory clerks

For letting agents, the report challenges a widely held narrative: that the exit of smaller landlords automatically means fewer rental homes and greater pressure on supply. If the number of available rental homes is not falling despite smaller landlords leaving, agents may need to reassess how they advise both landlords and tenants about market conditions.

For inventory clerks, a shifting ownership base in the rental market can mean more properties changing hands between landlords. Where smaller landlords are exiting, properties may be taken on by different owners or management arrangements, which could increase demand for check-ins, check-outs and mid-term inspections as tenancies transfer.

The prospect of rent controls is also significant for the sector. Any introduction of rent controls would directly affect rent assessments, tenancy renewals and landlord conversations handled by letting agents. The Joseph Rowntree Foundation's position is that such controls should be brought in without delay, so agents should be aware that this is an active area of policy debate.

A cautious read

The analysis, as reported, makes two key points: smaller landlords are leaving the PRS, and the total number of homes available to rent is not declining as a consequence. Beyond that, it reports the Joseph Rowntree Foundation's view that the sector is not shrinking and that rent controls are warranted now.

Letting agents and inventory clerks will want to follow developments closely, as both the ownership makeup of the rental market and the potential for rent controls could shape day-to-day practice in the months ahead.