The research, based on responses from 1,007 landlords, was conducted immediately after the Renters’ Rights Act came into effect on 1st May 2026.
The proportion of landlords who said they do not plan to either increase or decrease their portfolios over the next one to two years fell from 41% to 36% over the past six months.
Smaller landlords appear particularly likely to consider leaving the market. Among those with one or two properties, 31% said they intend to sell all their properties and leave the rental market, up from 28% in October 2025 and 27% in March 2025. A further 23% intend to sell some of their properties.
For landlords with three or more properties, 48% plan to sell some properties, while 16% intend to sell their entire portfolio and leave the market.
Legislation was the most commonly cited factor influencing landlords considering a sale. It was selected by 89% of smaller landlords and 96% of those with larger portfolios. Return was also a significant factor, cited by 76% and 82% respectively.
The findings come as growth in the number of protected tenancy deposits slows. Ministry of Housing, Communities and Local Government data cited by DPS showed 5,660 additional deposits were protected in the six months to 31st March 2026, the lowest half yearly increase since reporting began in 2016.
This compared with almost 17,000 additional deposits during the previous six months.
DPS said the slowdown could reflect landlords taking fewer deposits, longer tenancies following the end of fixed term tenancies, or changing attitudes towards investment in the PRS.
Despite indications that some landlords are looking to reduce their exposure to the sector, there are signs of continued rental demand. Among landlords who had offered at least one property for rent, 15% said applicant numbers had increased but not doubled, 5% said they had roughly doubled and 7% reported that applications had more than doubled.
Rental costs also remain a consideration for landlords. Some 68% said they plan to increase rents on some or all of their properties, although only 19% said they intend to increase rents automatically each year.
Among landlords considering rent rises, legislation costs were cited by 86%, maintenance costs by 75% and risks by 71%. Local rental rates were cited by 66%, while 46% pointed to mortgage costs.
The average tenancy deposit has meanwhile increased to £1,208, from £1,195 in the previous report and £1,175 in March 2025. DPS said that, with deposits capped in relation to rental values, this implies an average monthly rent of around £966.
The report said it remains too early to determine the full impact of the Renters’ Rights Act on landlord behaviour and the wider PRS.
