Small Landlords, Big Pressure: Why Retrofit Reform Risks a Rental Monopoly

From the outside, you’d be forgiven for thinking landlords are thriving. After all, rents are rising and property has long been seen as a sure bet. But scratch beneath the surface and you’ll find a private rental sector (PRS) buckling under the weight of policy uncertainty, unrealistic deadlines, and retrofit expectations that risk driving out the very landlords keeping the system afloat.

In a detailed conversation with Eleanor Bateman, Public Affairs Manager at the National Residential Landlords Association (NRLA), a picture emerged of an overstretched and ageing landlord population being nudged—perhaps wilfully—towards the exit door. Ellie told us;

"There's a huge amount of uncertainty and that's partly because there's a sort of lack of information and certainty really coming out of government,"

The Unworkable Target

Retrofit targets aren’t the issue—delivery is. The government's proposed Minimum Energy Efficiency Standards (MEES), aiming to push all PRS properties to EPC C, are laudable in theory but unworkable in practice.

"Even if the government set the goalposts by summer this year, there’s still 2,000 properties that need to be retrofitted every working day between now and December 2029."

But landlords are expected to navigate this with no clarity. Because no one in the government has ratified what the EPC reform will be...

"We don't know whether that EPC C is a current B or a current D—it’s just impossible to guess where that’s going to land."

Smaller Landlords Squeezed Out

Despite media narratives, most landlords are not vast portfolio owners.

"About 93% of landlords are individuals, most of whom have just one property."

These landlords are now caught in a tightening vice of costs, uncertainty, and bureaucratic friction.

"It’s a bit of a broken market. You look at the figures and think, when there’s 20 households chasing every property, we should be seeing investment—but we’re not."

The Hidden Cost of Void Periods

Retrofit work requires void periods—time when rent isn’t coming in.

"Smaller landlords are going to be most affected by voids. If you’ve got one property and it’s a D-rated house needing £15,000 of work, that’s a huge business risk."

Student and HMO landlords are particularly exposed:

"Student landlords might only get one summer holiday to do everything before the 2028 deadline."

Centralising Wealth by Design?

One question looms large: is this a consequence of poor policy—or part of a broader trend?

"We’re already seeing consolidation in the sector. There are fewer landlords, but the average portfolio size is increasing."

"Maybe that’s what the government wants. Maybe it wants landlords to sell up and for those properties to go into home ownership."

Bateman was clear: the sector’s demographic is shifting.

"You’ve got a lot of landlords who invested years ago and are now looking to exit. We need younger landlords coming in—and we’re not seeing that."

The Myth of ‘Professionalisation’

The push for a more “professional” sector often translates to “bigger landlords.”

"It seems the government thinks larger means more professional. But tenants prefer direct relationships with landlords who are emotionally and personally invested."

"Where a landlord’s invested in their property, they tend to maintain it better. That benefits tenants."

Navigating Without a Compass

Landlords are not retrofit experts. Yet many are expected to become one overnight.

"Landlords are being asked to navigate a technical area they don’t understand. They need handholding."

"There’s real inconsistency in the sector. One assessor says one thing, another says the opposite."

The industry lacks centralised guidance or support. The truth is that rental properties are just like the ones we all live in and the poor take up of retrofit is indicative of a vacuum of information.

"We probably can and should do more, but right now it’s just signposting. There’s no central oversight."

A Retrofit Rental Taskforce

A solution is needed: a Retrofit Rental Taskforce.

Such a taskforce could standardise guidance, pool resources, and create a trusted infrastructure for retrofit delivery in the PRS.

"At the moment, landlords go to whoever’s selling heat pumps, not neutral experts. That’s a huge problem."

Time for Policy Reality

Retrofit goals are urgent—but they must be realistic.

"We’d like to see flexibility—maybe commit to fabric measures by 2030, but allow longer for secondary measures."

When we look at the average cost of a retrofit in the UK and the cap on funding;

"£15,000 might make sense in the southeast. It doesn’t in mid-Wales. There’s no recognition of regional value differences."

Without reform, the sector will hollow out.

"Right now, the proportion of landlords considering selling is significantly higher than buying. That should worry everyone."

It's About A Squeezed Middle - Again

The private rental sector isn’t just a business ecosystem—it’s a social one. When small landlords vanish, so does tenant choice, affordability, and quality. We risk trading diversity for monopoly, pragmatism for dogma.

The call is clear: empower landlords, not just pressure them. Retrofit reform must be partnered with real-world support—or we’ll lose the very people who’ve been holding the roof up for decades.

This is a sector that grew because of demand, there isn't enough social housing or really, just housing.

Small landlords make vacant buildings habitable. But they shouldn't be doing the job of a government.