Government denies landlord exodus despite surge of small landlords selling up

The government claims there is no evidence of a landlord exodus, despite industry experts warning that the days of small landlords “are over”.

A story in The Telegraph reveals small landlords are selling their properties whilst larger and institutional landlords are snapping up homes.

The news comes as the Renters’ Rights Act came into force on 1 May 2026.

No evidence of a landlord exodus

A Ministry of Housing spokesman claimed to The Telegraph that the Renters’ Rights Act has not caused a landlord exodus and the act will help landlords and tenants.

The spokesman told The Telegraph: “Our landmark Renters’ Rights Act will bring the biggest upgrade to renters’ rights in a generation, while ensuring landlords have the stability and clarity they need.

“There’s no evidence of a landlord exodus, and good landlords who provide quality homes have nothing to fear from our reforms.”

However, figures by Auction House Kent to The Telegraph reveal the number of tenanted properties sold at auction jumped 70% in April compared with the same month last year as landlords looked to exit the market before the reforms came in.

The figures also reveal larger and professional landlords are snapping up properties as they are unfazed by the Renters’ Rights Act.

Philippa Martinez, at Auction House Kent, told The Telegraph: “It is a good time for those larger landlords that run their properties like a business, are experienced in what they’re doing and are unfazed by the new reforms to snap up a deal and add to their portfolios”

An avalanche of landlords selling

Paul Shamplina, founder of Landlord Action, says a “landlord panic” before the Renters’ Rights Act has shifted the market towards larger investors.

He told The Telegraph: “There has been an avalanche of landlords selling. If you’re geared up and understand regulation, you can scale up.

“There are institutional landlords piling in, but the days of the part-time, amateur landlord are well and truly over.”

Landlords are worried about fines

David Coughlin, at Landlord Sales Agency, told The Telegraph, more than 50% of their sales in the past few weeks had been to landlords with 10 to 15 properties who were capitalising on the exodus of smaller landlords to expand their portfolios.

He said: “They’re not massive landlords with 1,000 properties. They’re hungry buyers who have been in the market for a while and are set up with limited companies. They’re just keen to buy and they’re not afraid of the reforms.

“The ones leaving are either between 60 and 70 years old and just want to retire, or they’re worried about fines and the finances don’t stack up for them any more.”

The news comes as Savills reveals nearly 700 former homes to rent are listed for sale every day as legislation piles pressure on landlords.