The proportion of landlords owning just one or two properties fell from 57 percent to 50 percent in a single year, according to new data from The Deposit Protection Service (DPS). The figures, drawn from the DPS Private Rented Sector Review based on a survey of more than 1,000 landlords, show a marked shift towards medium and larger portfolios between October 2024 and October 2025.
Smaller portfolios shrink as mid-sized investors gain
Over the same period, the share of landlords with three to five properties increased from 27 percent to 31 percent, while those owning 11 or more rose from 5 percent to 8 percent. The proportion with six to ten properties remained unchanged at 11 percent. This follows Landlord Knowledge’s coverage of a £48 billion contraction in the private rental sector, which highlighted the scale of landlord exits. The latest DPS data confirms small-scale investors are bearing the brunt of pressures that are reshaping the market. Matt Trevett, managing director at The DPS, said: “Smaller landlords now account for a shrinking share of the market, while medium and larger portfolios are becoming more prominent. “At a time of ongoing economic pressure and regulatory change, the data suggest the sector is continuing to consolidate.”
Rental income remains secondary for most landlords
The report also reveals how landlords are structuring their incomes. More than a third (36 percent) say rental income is their main source of income, while a majority (56 percent) say it is not their primary source. Despite the well-documented shift towards limited company structures, just 5 percent of respondents reported operating via limited companies, with 28 percent continuing to let as individuals or sole traders. The findings suggest many landlords remain exposed to higher personal tax rates, even as incorporation has become a popular strategy for portfolio expansion among professional investors.
What this means for landlords
- If you own one or two properties: Rising costs and regulation may be squeezing margins – review whether the returns still justify the compliance burden.
- Watch for: Further consolidation as smaller investors exit and institutional or portfolio landlords absorb stock.
- Bottom line: The rental market is becoming increasingly professional – landlords who remain will need to treat lettings as a business, not a passive investment.
Editor’s view
The seven-point drop in small landlord numbers is significant – it signals an acceleration in the trend away from accidental or part-time landlords. What remains unclear is whether larger portfolios are actively acquiring these properties or whether the stock is simply exiting the rental market altogether. Either way, the days of the casual landlord appear numbered.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 20 March 2026
Sources: The Deposit Protection Service Private Rented Sector Review February 2026
Related reading: Private rental sector shrinks £48bn as landlords exit market
