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Goodlord State of the Industry 2025
Key Insights and Strategic Figures for Landlords in Wales and the UK Lettings Market
The Welsh Landlord Landscape: Opportunities for Partnership
The data highlights a significant portion of landlords in Wales who are not currently using a full-management agent. This segment represents a clear opportunity for us to offer professional support, especially given the rising compliance burden.
Agent Usage in Wales
| Category | Percentage |
|---|---|
| Have never used an agent | 25% |
| Don't currently use, but have previously | 31% |
| Use an agent for some properties (not all) | 20% |
| Use an agent for all properties | 24% |
Furthermore, 66% of Welsh landlords have 5 properties or fewer, indicating a market dominated by smaller, private portfolios who often need the most administrative support.
Market Headwinds: Supply, Demand & Selling Up
The market is tightening. Supply is down, demand is high, and many landlords are exiting due to increasing hassle and cost, particularly regarding upcoming energy efficiency rules.
Portfolio Reduction & Regulatory Concerns
- Demand Surge: Rental supply is 20% lower than pre-pandemic, while Occupier demand has surged by 60% over the same period.
- Exit Reasons: Landlords selling cite “increased time and hassle involved in renting property” and “general complications and costs of being a small landlord.”
- EPC Impact: 63% of landlords view the proposed EPC Band C target negatively due to cost. Crucially, 39% say they would rather sell than invest into EPC improvements.
- Selling Trends: Landlords with 20+ properties were the most likely to sell (35% sold in the past year).
The Tenant Experience: Affordability & Stability
Financial strain is a major factor for tenants, affecting payment stability. This data emphasizes the need for careful tenant selection and affordability checks.
Arrears and Affordability Challenges
- Rent Poverty: Almost half (42%) of tenants are in ‘rent poverty,’ spending 40% or more of their gross income on rent.
- Financial Distress: A third of tenants say a mere 3% rent increase would push them into financial distress.
- Arrears Increase: 42% of landlords reported an increase in arrears compared to last year.
- Willingness to Move: Welsh tenants are the most willing in the UK to move further away (up to 29 miles) to find affordable housing.
How Rent is Set: The Agent Advantage
Our professional service offers significant value in maximizing rental yield while ensuring fairness, as shown by the difference in how agents and self-managing landlords approach rent increases.
Rent Setting Strategy Comparison
| Reason for Rent Increase | Self-Managing Landlords | Letting Agents |
|---|---|---|
| Based on local comparables | 67% | 41% |
| Based on agent recommendation | 1% | 38% |
| Based on economic statistics | 13% | 9% |
Key takeaway: When working with an agent, 38% of rent increases are directly based on professional recommendations—a figure that is virtually non-existent for self-managing landlords. This confirms the value of expert advice in achieving optimal rental returns.
These figures underline the increasing complexity and risk in the private rented sector. Professional management is no longer a luxury, but a necessity to ensure compliance and financial stability.
