A new report from Savills has challenged the widespread perception of landlords as high-earning profiteers, revealing that more than half of individual private landlords earn less than £10,000 in gross rental income per year.

The findings come as many in the sector face mounting regulatory and fiscal pressure, with smaller landlords increasingly questioning whether to remain in the market.

According to the report, published this week by Savills using data from the English Private Landlord Survey, the average gross rental income for unincorporated landlords — those holding property in their personal name — is £17,665, with average profits falling to just £9,021 once costs such as finance and maintenance are deducted.

Landlords Facing ‘Binary’ Decision: Hold or Exit

The report paints a stark picture of the private landlord landscape:

• 51% of individual landlords report gross rental income of under £10,000 per year

• Fewer than 5% earn more than £50,000

• The average finance costs amount to £2,799, further eroding margins

Savills notes that landlords earning under £10,000 are often confronted with a binary choice: either hold on, or increasingly, sell up. “Only the bravest,” the report states, “are likely to expand in the current environment.”

Small-Scale Landlords Carry the Burden

The report also highlights that:

• 45% of landlords own just one property

• A further 37% own between two and four properties

• 50% of single-property landlords originally lived in the home themselves

• 5–6% became landlords via inheritance or gifts

These statistics reinforce the notion that a significant share of the PRS is made up of accidental or small-scale landlords, many of whom lack the resources of large corporate operators. “They represent smaller landlords, for whom the growing raft of regulation is a more daunting prospect,” the report concludes. “Their resolve is being tested more than ever by the fiscal and regulatory environment in which they operate.”

Stamp Duty Hike Adds to Pressure

Adding to that pressure, recent figures show that nearly 111,000 property purchases in England and Northern Ireland paid the increased stamp duty surcharge on additional homes in the six months to March 2025.

The Autumn Budget 2024 stunned investors when Chancellor Rachel Reeves raised the Stamp Duty Land Tax (SDLT) surcharge from 3% to 5% for second homes and investment properties — a move designed to deter speculative purchasing and rebalance the housing market.

For small landlords already navigating tighter EPC regulations, evolving safety standards, and uncertainty around rent controls, the surcharge has tipped the scales further.

Rethinking the Landlord Narrative

The Savills findings challenge the dominant media portrayal of landlords as uniformly wealthy and exploitative. Instead, they reveal a fragmented, largely modest-income sector now at a crossroads.

As the Renters’ Rights Bill nears implementation — bringing with it a landlord database, registry fees, and new standards — pressure is mounting on policymakers to distinguish between rogue operators and the ‘accidental’ or small-scale landlords who make up the majority of the sector.

Key Takeaway
Regulation is necessary, many agree — but a one-size-fits-all approach risks pushing out smaller landlords, reducing rental supply, and deepening the affordability crisis. The myth of the ‘greedy landlord’ may soon give way to a new reality: one where many are simply struggling to stay afloat.