The Property Franchise Group has reported a net loss of 4,000 rental properties from its managed lettings portfolio, with the company attributing the decline directly to landlord caution ahead of the Renters Rights Act.
The group – which owns Belvoir, Nicholas Humphreys, GPEA and other letting agent brands – saw its managed portfolio fall from 153,000 properties at the end of 2024 to 149,000 by December 2025. The company told shareholders the drop “reflects landlord caution ahead of the Renters’ Rights Act, alongside a more measured pace of portfolio acquisitions as franchisees assessed the regulatory landscape.”
Revenue growth despite portfolio decline
Despite losing properties, TPFG lettings management service fees grew 15 percent to £21.9m, up from £19m the previous year. The group reported overall revenue growth of 25 percent to £84.3m, with adjusted profit before tax rising 39 percent to £31m.
Gareth Samples, chief executive, said 2025 was “characterised by strong organic growth and solid operational progress across all three divisions, delivering profitability ahead of expectations.”
The results follow Foxtons reporting growth in its lettings portfolio last month – suggesting larger corporate landlords may be expanding while smaller private operators exit. The contrast highlights a widening gap between professional operators positioned to absorb regulatory complexity and individual landlords who find the burden increasingly unmanageable.
Sector continues to contract
The portfolio loss adds to mounting evidence that the private rented sector is shrinking ahead of the Renters’ Rights Act 1 May implementation. Landlord Knowledge analysis showed the PRS has contracted by £48bn since 2022, with continued landlord exits expected throughout 2026.
Parliamentary debate earlier this year suggested up to 110,000 landlords could leave the market in 2026, driven by a combination of tax changes, rising compliance costs and uncertainty over the new tenancy regime.
What this means for landlords
- If you are considering selling: TPFG results suggest franchised agents remain commercially viable despite the regulatory shift – but the portfolio loss shows many landlords are choosing to exit rather than adapt.
- Watch for: Letting fees may rise as agents seek to maintain revenues from fewer properties – TPFG grew fee income despite losing stock.
- Bottom line: The RRA is accelerating consolidation, with larger operators gaining market share while smaller landlords leave. Those staying must decide whether to self-manage or pay higher professional fees.
Editors view
TPFG results offer a glimpse of what RRA-era letting looks like: fewer properties, higher fees, but strong margins for those who stay in the market. The question for remaining landlords is whether they can achieve similar efficiency – or whether the game increasingly favours those with scale.
Author: Editorial Team – UK landlord and buy-to-let news, policy, and finance
Published: 18 March 2026
Sources: The Property Franchise Group shareholder statement
Related reading: Private rental sector shrinks £48bn as landlords exit market
