A major government-backed survey has revealed the scale of financial strain and uncertainty facing landlords in the UK’s private rented sector. Commissioned by HMRC and conducted by Ipsos, the research offers the most comprehensive insight yet into the experiences, behaviours, and intentions of over 1,200 landlords across the country.

Key Findings at a Glance

• 24% of landlords plan to sell at least one property within the next 12 months, with this figure rising to 33% over five years.

• Over half of landlords (55%) own just one rental property; the average number owned is three.

• 63% earn less than £20,000 in gross rental income per year; 52% make less than £10,000 profit.

• Most landlords are individuals (93%), not companies or partnerships.

• The majority (60%) acquired property specifically as an investment, while 40% inherited or previously lived in the property.

• 78% use rental income to supplement other earnings; only 19% rely on it as their main income.

• 73% of landlords say they will retain their current property portfolio in the next year.

Tax and Management Challenges

Despite most landlords feeling broadly confident about filing tax returns:

• 49% use an accountant to manage tax matters.

• 43% handle tax themselves, but many report difficulties due to complex and frequently changing rules.

• 40% cite lack of clarity in HMRC guidance as a significant barrier.

• 63% use letting agents or property managers to handle rental operations.

Why This Matters

The findings expose a fragile ecosystem, where a large share of the sector is made up of small-scale landlords with tight margins, limited capacity for compliance, and dwindling incentives to stay in the market. The looming threat of property sell-offs could exacerbate housing shortages, particularly for low-income renters.

With policy reforms underway—including tax rule changes and the forthcoming Renters Reform Bill—understanding landlords’ perspectives will be vital to shaping effective regulation without accelerating the decline in available rental homes.

The full report can be seen here