Is the Private Rented Sector Shrinking Beyond Reach? And How Agents Can Still Prospect in Tough Times
- Milton Jannusch
- Oct 6
- 3 min read
The lettings industry is in flux.
📉 Landlords are selling up.
📉 Supply is dropping.
📉 Competition for available stock is fiercer than ever.
With so many acquisitions consolidating portfolios, and with the private rented sector shrinking year after year, many agents are asking:
👉 “Is there even room to grow organically anymore?”
At Pro Property London, we’ve been tracking the trends — and the reality is sobering: there are fewer rental properties entering the market, and more landlords choosing to cash out. But that doesn’t mean growth is impossible. It just means prospecting has to evolve.
📊 The Shrinking PRS: What the Numbers Show
According to NRLA data, tens of thousands of landlords have already sold up in the last two years, citing tax changes, compliance burdens, and reforms.
SpareRoom research suggests as many as two-thirds of landlords are considering an exit in the next 5 years.
Available rental stock has fallen by double digits since 2018, while tenant demand continues to rise.
That imbalance is driving higher rents — but fewer instructions for agents. The result? More agents fighting over fewer properties.
🧠 What This Means for Letting Agents
Organic growth is harder: you can’t just wait for landlords to walk through the door.
The “easy” landlord market is drying up — leaving agencies to prospect smarter.
Agents must focus on building value, demonstrating expertise, and capturing landlords who might otherwise self-manage or consider selling.
✅ Top 5 Prospecting Tactics for Letting Agents Right Now
1. Target Accidental Landlords
Life changes create landlords: job relocations, inheritances, divorces, upsizing. Build content and outreach that speaks directly to these scenarios — and position yourself as the easy solution.
2. Leverage Your CRM Goldmine
Every tenant who moved out might one day become a landlord. Every valuation enquiry is a warm lead. Mine historic data in your CRM, recycle it, and use automation to re-engage dormant contacts.
3. Build Compliance Campaigns
Landlords are overwhelmed with reform. Create free guides, webinars, or one-to-one landlord compliance check-ups. When landlords feel at risk, they turn to professionals.
4. Prospect Expiring Fixed-Rate Mortgages
Mortgage data is public. Landlords refinancing (especially at higher rates) are perfect prospects — many consider selling unless shown a strong management partner. Position yourself as the one who can protect their yield.
5. Create a “Pre-Portal” Database
Market to landlords that you have waiting tenants. Showcase your ability to let properties without the portals (saving time and cost). Nothing is more attractive than speed and certainty.
6. Partner with an inventory company
Market to landlords that may need deposit negotiation assistance, a nice way to help when things get tricky for self managers.
📍 Our Take at Pro Property London
The private rented sector may be shrinking, but the role of agents has never been more important.
Landlords who stay in the game will need:
✔️ Professional compliance support
✔️ Transparent property management
✔️ Fast, dispute-free tenancies
And the agents who capture that trust — in today’s tough environment — will be the ones who grow tomorrow.
At Pro Property London, we support letting agents with:
Detailed inventories and inspections
Compliance-ready documentation
White-labelled services that keep landlords protected
Because the industry may be consolidating — but there’s still room for agents who adapt.
📞 Want to prospect smarter in a shrinking PRS? Let’s chat.
📞 02038663808
Comments