London landlords saw the largest decrease in income declared, falling by £350m, equivalent to 2pc.
The Channel Islands saw the biggest collapse in small landlord income, recording a decrease of nearly 24pc, followed by the East of England at almost 5pc.
South East England registered a fall of 7,000 small landlords, while Scotland suffered a 2.4pc drop of around 4,000.
Chris Norris, of the National Residential Landlords Association, a trade body, said: “It will be of little surprise to the sector that the first dip in landlord numbers in five years has occurred in the period running up to the implementation of the Renters’ Rights Act.
“Landlords face a more complex and costly legislative environment, with lower profits and higher taxes making many reconsider their place in the market.”
He warned that renters would ultimately “pay the price” with higher rents owing to “an increasing shortfall in the supply of rented accommodation”.
