There’s a new player in the UK’s private rented sector—one that’s threatening to fundamentally reshape the way tenants experience renting. As small landlords leave the market, driven out by crippling taxes and increasing regulations, corporate landlords are stepping in to fill the gap.
It might sound like a solution—after all, someone needs to provide rental properties. But here’s the catch: as these corporate giants take over, the rental market risks turning into a monopoly, where tenants face higher rents, stricter contracts, and a future where the personal touch of independent landlords is a distant memory.
Small Landlords Out, Corporate Landlords In
In recent years, policies like Section 24 have put immense pressure on small landlords, who traditionally owned just a few properties. These landlords—families, retirees, or small business owners—often viewed property rental as a reliable investment. But the increasing costs of taxation, coupled with the mountain of regulations, are pushing them out of the market.
Take Tom and Sarah, who have been renting out their two flats for years. Their tenants love them—they’re responsive, flexible, and quick to deal with issues. But after seeing their tax bill skyrocket under Section 24, Tom and Sarah are now forced to sell. They just can’t make the numbers work anymore.
As landlords like Tom and Sarah leave, large corporate landlords are swooping in to take their place. These companies often buy up properties in bulk, build large-scale developments, and focus on maximising profits.
What’s Wrong with Corporate Landlords?
Corporate landlords bring scale and efficiency, but the problem lies in how they’re fundamentally changing the rental experience for tenants. As these companies grow their share of the market, we’re starting to see the rise of a rent monopoly—and it’s tenants who are paying the price.
1. Skyrocketing Rents
With fewer independent landlords in the market, competition is shrinking. As corporate landlords dominate more of the rental sector, they gain the power to set rents at higher prices.
Take Amy, who recently moved into a new Build-to-Rent development after her independent landlord sold up. Her new flat is nice, but the rent is 25% higher than what she was paying before—and she’s been told it’s likely to increase again when she renews her lease next year. With fewer affordable options available, tenants like Amy are stuck paying higher rents, even when wages aren’t keeping up.
2. Loss of Personalised Service
One of the key benefits of renting from a small landlord is the personal service. Independent landlords are often more flexible, understanding, and responsive to their tenants’ needs. They live locally, take pride in their properties, and build long-term relationships with their tenants.
When these landlords leave the market, tenants are left with faceless corporate management companies that prioritise profits over tenant welfare. Anna, who rented from a small family landlord for five years, never had to wait long for repairs, and her rent was stable throughout her tenancy. But when a corporate landlord took over her building, the service became impersonal, and rent reviews became frequent. Now, she’s just a number in a database, waiting days or weeks for basic maintenance.
3. Stricter Tenancy Agreements
With corporate landlords, tenants are often forced to accept one-size-fits-all tenancy agreements. There’s little room for negotiation, and contracts tend to favour the landlord. Corporate landlords aren’t interested in negotiating flexible terms, and tenants may find themselves locked into rigid contracts with limited rights.
For example, Daniel, a tenant in a corporate-owned Build-to-Rent complex, found that his tenancy agreement offered no flexibility when he needed to break his lease due to a job relocation. He was hit with heavy fees for early termination, something that wouldn’t have happened if he were renting from an independent landlord.
Are We Heading Toward a Rent Monopoly?
The growing influence of corporate landlords is reshaping the UK rental market. As more independent landlords are driven out by government policies, corporate landlords are stepping in, consolidating control, and creating a rental monopoly where tenants have fewer options and little bargaining power.
Here’s the danger: as competition decreases, corporate landlords are free to drive up rents, limit tenant rights, and prioritise profits over the well-being of tenants. With fewer independent landlords to offer affordable and flexible housing, tenants could soon find themselves at the mercy of large, profit-driven entities that care more about their bottom line than providing quality homes.
The Government’s Role in the Shift
So, how did we get here? Much of the blame lies with government policies that have unintentionally pushed independent landlords out of the market. Section 24, as we’ve mentioned, has made it financially untenable for many smaller landlords to continue operating, particularly those with buy-to-let mortgages.
At the same time, regulations such as Minimum Energy Efficiency Standards (MEES) and eviction bans, while important for tenant protection, are adding layers of complexity that smaller landlords struggle to keep up with.
Meanwhile, corporate landlords, with their larger scale and deeper pockets, are better equipped to handle these regulatory demands and are taking full advantage of the opportunity to buy up more properties.
The Consequences for Tenants
The rise of corporate landlords isn’t just an issue for landlords—it’s having a direct impact on tenants. With rents rising and tenancy agreements becoming more rigid, tenants are losing the flexibility and affordability they once enjoyed.
Higher Rents: As corporate landlords consolidate their power, rents are continuing to climb. Tenants are spending a greater proportion of their income on rent, leaving them with less money for savings or other essential expenses.
Reduced Rights: Corporate landlords often favour standardised contracts that limit tenants’ ability to negotiate on key issues, from repairs to rent increases. Tenants have less freedom and fewer options for securing fair terms.
Less Personal Care: Independent landlords often took pride in maintaining good relationships with their tenants, responding quickly to repairs, and offering flexibility in difficult times. As corporate landlords take over, tenants are left with impersonal management structures that can’t offer the same level of care.
What Can Be Done?
If we want to stop the rise of a rent monopoly and keep the rental market diverse, the government needs to rethink its policies and provide more support for small, independent landlords. Here’s how we can turn the tide:
Reform Section 24: Repealing or reforming Section 24 would allow independent landlords to stay in the market and keep rental supply strong.
Incentivise Long-Term Landlords: The government should offer tax incentives or grants to independent landlords who provide long-term tenancies and high-quality homes.
Regulate Corporate Landlords: While small landlords face increasingly strict regulations, corporate landlords often escape the same level of scrutiny. Greater regulation of Build-to-Rent giants would help ensure they’re held to the same standards as small landlords.
via [Property118]