Landlords exit the PRS as rules tighten and costs soar

Landlords exit the PRS as rules tighten and costs soar

0:04 AM, 5th March 2025, About a month ago 5

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A surge in landlords offloading their properties has sparked alarm as data shows that the share of former rental homes hitting the market leaping nearly 50% compared to last year.

According to ThisisMoney.co.uk, the sell-off is being driven by stricter regulations, soaring mortgage costs and rising taxes.

The upcoming Renters’ Rights Bill is also predicted to fuel the landlord sell-off.

Using exclusive data from property analysts TwentyCi, the figures show that in January, 25,049 ex-rental homes were put up for sale across the UK, making up 17.4% of all new listings.

This marks a steep climb from 2024, when just 11.7% of homes for sale had previously been let out.

Homes leave the PRS

The statistics also highlight a staggering 111,696 rental properties were snapped up by owner-occupiers last year, vanishing from the private rented sector entirely.

Colin Bradshaw, the chief executive of TwentyCi, told ThisisMoney.co.uk: “The rental market remains under significant strain, with tenants across the country facing a chronic shortage of homes.

“Our analysis reveals that a growing number of landlords are selling up to exit the sector, resulting in a substantial number of properties disappearing from the rental market.

“This will only worsen the supply crisis and drive rents even higher — and this is before the Renters’ Reform Bill has even been enacted.”

Adding to tenant woes, average asking rents have rocketed to £2,054, a 35% jump since January 2019, according to TwentyCi’s findings.

Landlords face shrinking profits

Babek Ismayil from OneDome warned the site that landlords face shrinking profits due to higher taxes and the loss of full interest rate relief, pushing many with buy to let mortgages to sell.

However, he says that student rentals in university towns remain a bright spot.

Estate agents report mixed trends with Ryan Harris of Hamptons in Clapham noting a steady shift of rental homes to sales, while Amy Reynolds of Antony Roberts in Richmond says landlords are exiting without new ones stepping in.

However, Jeremy Leaf in north London told the site that he sees landlords holding firm, buoyed by record rents and a ‘wait and see’ stance on the Renters’ Rights Bill.

If you would like to discuss quickly selling your rental property with experts, contact Landlord Sales Agency:

Contact Landlord Sales Agency


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TheMaluka

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10:06 AM, 5th March 2025, About a month ago

This is obviously incorrect as Mr Pennycook can see no evidence of landlords leaving the sector, and as we all know government ministers are never wrong.

Reluctant Landlord

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13:42 PM, 5th March 2025, About a month ago

Mr Pennycrook needs to go to specsavers....

Cider Drinker

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20:49 PM, 5th March 2025, About a month ago

Don’t worry.

Angela Rayner says that Section 21 is the main cause of homelessness. So, when it’s abolished, everybody that wants a home will have one.

Obviously.

Lomondhomes

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8:18 AM, 9th March 2025, About a month ago

Not according to the government.......so we are ok then

Rakesh Joshi

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10:07 AM, 10th March 2025, About a month ago

As the landlords leave the sector, many letting agents will be forced to downsize or close. Leading to unemployment and less incoming taxes for the government.
This problem will be further compounded as fewer houses are being built and the population is increasing based on government's on data.
I would like to hear SHELTER's view on this and the road map they have created in taking the tenants for a walk off the cliff.

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