Landlord exodus slows as sell-offs fall

Landlords considering selling up appear to be stepping back from their exit plans, with fewer former rental homes being listed for sale ahead of the Renters’ Rights Act changes.

According to TwentyCi, the proportion of homes coming to market that were previously rented has dropped over the past year, based on analysis of the last 15 months.

The share of properties listed for sale that had been rented within the previous three years fell from 22.5% in Q1 2025 to 12.4% in Q1 2026.

That’s a 45% year-on-year reduction and the figures bring activity closer to historic norms after a period of higher landlord disposals.

Hard being a landlord

The firm’s latest Property & Homemover Report notes: “A wave of regulatory changes has significantly reshaped the private rental sector.

“Stricter compliance requirements, enhanced tenant protections, and rising operational costs, combined, have made it increasingly undesirable to be a landlord.”

It goes on: “The stock of private rental properties in the UK has reduced and continues to fall as a result of regulation and taxation changes.

“This is, and has, occurred at a time when the availability and affordability of private rental stock for tenants are two of the government’s most pressing housing problems.”

Former rental homes

Regionally, London recorded the sharpest decline in landlords listing former rental homes for sale, with a 51% year-on-year fall.

Outside the capital, the reduction stood at 41%, showing a broad-based shift across the country.

Within London itself, inner London saw a 52% drop in landlords exiting compared with the same period last year, while outer London recorded a 45% fall.

Inner London still registered the highest level of landlord sales activity among all regions.

Advertised for relet

Separately, the data tracks what happens to former rental homes once sold, focusing on transactions completed in Q2 and Q3 2025.

Only 11% of those properties in London were subsequently advertised to let again by the end of Q1 2026.

Outside London, the proportion returning to the lettings market was lower still, at 6% of transactions over the same period.

The figures are based on more than 492,000 transactions analysed across the UK.

The data shows that in Q1 2025, half of all homes listed for sale in London were previously rented properties, compared with 16% across the rest of the UK.