Writing in Landlord Today, Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank makes the same case iHowz have been making for some years – landlords are a business, not a hobby.

The private rented sector (PRS) has undergone significant professionalisation over the past decade, with larger-scale landlords and limited companies becoming more dominant. Yet, government policy and regulation still treat all landlords as a single group, failing to distinguish between small-scale investors and those running property businesses as SMEs.

The Changing Face of Landlords

• The number of ‘hobby landlords’ has declined due to tax and regulatory changes.
• The Renters’ Rights Bill and Stamp Duty increases will likely accelerate this trend, making it harder for smaller landlords to remain in the market.
• Portfolio landlords—who run structured property businesses—are filling the gap, acquiring properties from those exiting the sector.

The Economic Role of SME Landlords

• The PRS contributes £45 billion to the UK economy.
• It supports 390,000 jobs, from property management to compliance.
• Portfolio landlords invest in housing stock, improving standards and energy efficiency.

Government Misconceptions & Policy Gaps

Despite this economic importance, landlords remain mischaracterised in political discourse.

• The Prime Minister’s claim that landlords are not “working people” ignores the operational complexity of managing rental properties.
• Policy changes fail to recognise the difference between a one-property landlord and those running large-scale rental businesses.
• More regulatory burden is driving consolidation in the sector, with larger landlords expanding as smaller investors exit.

The Future of the PRS

• Further regulation is inevitable, but it must ensure the PRS remains viable for investment.
• More compliance personnel will be needed within landlord businesses.
• To support housing supply, policymakers must acknowledge the economic role of landlords and ensure fair, business-friendly policies.