Landlords selling up as tenant demand hits new high
Tenant demand continues to climb, but landlords continue to sell amid fears over new legislation.
According to Propertymark’s Housing Insight report, demand continues to exceed supply, with an average of nine applicants per property available per member branch.
The Renters’ Rights Act received Royal Assent last month, but the government has yet to set out a timeline for its implementation, leaving many landlords uncertain about the future.
Landlords are still very wary of Section 21 being abolished
A Propertymark agent from the East Midlands warns of a supply shortage.
The agent said: “There’s a shortage of two-bed houses under £900pcm. Landlords are still very wary of Section 21 being abolished, and we are continuing to serve Section 21 notices now on tenants.”
Another agent from the South West said: “Very worrying, I only have a small portfolio of approximately 50 properties, and four of those (7.2%) have asked me to serve a Section 21.
“As they now want to sell and leave the lettings market altogether, due to the new legislation coming in.”
According to the report, the average number of registrations per member branch rose to 111, while rental arrears also increased slightly, with reported problems rising to 2.6%.
Phil Spencer, founder of MoveiQ, says the government must do more to tackle the supply and demand crisis.
He said: “We’re seeing a market where interest is there in both selling and renting, but the system and the wider affordability environment remain under strain. Delays tell us the engine of the market isn’t yet running smoothly.
“For renters, the continued rise in registration numbers highlights the level of demand. Policymakers and industry really need to act, not just to serve this demand, but tackle the supply, process bottlenecks, financing, and regulatory requirements that create added pressure.”
Positive signals muted by affordability and access pressures
In the residential sales market, the average UK house price stood at £270,000.
While the number of new prospective buyers registered per member branch showed positive momentum, rising to 73 in September, around 35.9% of housing transactions took more than 17 weeks to complete on average.
Only 1% of properties sold for more than the asking price, while 93% were sold for less.
Nathan Emerson, chief executive of Propertymark, echoes Mr Spencer’s thoughts and calls for the government to do more.
He said: “Overall, we are seeing momentum in buyer registrations and in rental demand, which is heartening. But the two big caveats are: one, the transactional infrastructure needs to be more efficient to match that demand; and two, without growth in supply in both sales and rental sectors, we may see these positive signals muted by affordability and access pressures.
“Policymakers and the overall industry must focus not only on stimulating demand but on making sure the system can deliver. The next few months will be pivotal.”
Property118 commercial reality check
Tenant demand is surging while nervous landlords sell into the storm. That imbalance is the clearest signal of all: the market still rewards those who can hold their position with discipline and structure. Regulation is tightening, but professional landlords adapt faster than policymakers.
What serious landlords should do next
Model exit and retention scenarios. On a property-by-property basis. assess capital growth, tax exposure and yield under future legislation before reacting to headlines.
Refinance with purpose. Rising demand supports higher valuations and better loan-to-value positions. Use that equity to rebalance debt or create a buffer for regulatory transition.
Document everything. Audit trails, compliant tenancy paperwork and systemised maintenance records reduce operational risk and preserve sale value if you do choose to exit selectively.
Advantage through professionalism
Competence is now the real differentiator. Investors who treat lettings as a regulated business, not a sideline, will pick up the tenants and properties others walk away from. Process automation, corporate structure reviews and delegated management convert uncertainty into free headspace for strategic growth.
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Mystic Mortar Landlord Horoscope 14 Nov 2025
Member Since July 2022 - Comments: 23
12:45 AM, 14th November 2025, About 5 months ago
I have sold up like so many , you may find in the future you will never be able to get your property back there will always be a hick up in court therefore not a good investment with the reality of sitting tenants , yes it is happening now.
Member Since February 2024 - Comments: 65
3:47 AM, 14th November 2025, About 5 months ago
I’m selling up and will ultimately leave the sector.
Yes, you can still make money in being a landlord, but it’s now almost socially unacceptable to be one!
The profits continue to degrade every year while the costs spiral, compounded by taxes, council schemes, ridiculous legislations and totally ineffective courts for us.
The way things are now, it’s very easy to lose tens of thousands in an ever increasing verity or ways, and the legal and criminal consequences of circumstance or legitimate mistakes hang heavy on a private landlord now.
It’s easy to say you can still make money in this game, but it’s now more like poker that investment, and more and more of us are having bad experiences with tenants, courts, councils and legislation to the point it’s just not worth the stress.
You don’t make as much in a high interest account, but you will not be taken to court or lose sleep for having one.
Member Since October 2013 - Comments: 1642 - Articles: 3
11:58 AM, 14th November 2025, About 5 months ago
Reply to the comment left by Disillusioned Landlord at 14/11/2025 – 03:47
It is now clear that the PRS is for the larger portfolio and incorporated landlords, who are sitting on strong capital appreciation and can absorb the knocks… which are coming. Yes, there are still plenty of us ‘unprofessional’ and ‘accidental’ Landlords with a single or small number of properties, but it takes only one feckless tenant who could easily cost a landlord £20k, with no sight of a court date, and suddenly the landlord is in deep financial difficulty.
I don’t know what the answer is to the housing crisis, apart from build much more social housing, and quickly, which won’t happen. I do know I won’t be part of it.
Member Since August 2024 - Comments: 24
5:02 PM, 14th November 2025, About 5 months ago
I am just coming to the end of a complete sell off, only one more to go,,,next year now to avoid the cgt rape.
Over twenty years of rentals, no debt, long term tenants and I have had enough.
The Rental Rights Act ( should be named the TENANTS Rights Act !) is the last straw.
The fact the commie government wants money now for the “privilege ” of joining the Landlord Ombudsman ( actually just for tenants to use) and the “national landlord database” is just additional cost that the tenants will ultimately get added to their rental cost.
The latter is more concerning if the Landlords home address is available for all and sundry to view along with every rental address they own is asking for trouble.
Granted we have yet to see the details but along with the other requirements, epc, gas certs, electrical certs, property insurance cost, potential national insurance cost, etc I really can’t be bothered anymore.
I don’t need to invest any more time, or effort, when I can make money elsewhere for less aggro.
Member Since January 2023 - Comments: 318
6:21 PM, 14th November 2025, About 5 months ago
Reply to the comment left by Imout Ofhere at 14/11/2025 – 17:02
The scots have a LL register and yes the LL name and address is in the public domain
https://landlordregistrationscotland.gov.uk/search
I got the info via simply googleing- 1 High Street Glasgow and getting the corresponding postcode it gave me. This typed into the above link gave me 70 LLs and their home addresses!!!!
Member Since January 2011 - Comments: 12209 - Articles: 1408
7:02 PM, 14th November 2025, About 5 months ago
What I find most interesting is that most landlords commenting here are selling up. However, I also get to hear the polar opposite in person. This week I’ve spoken to one landlord who has completed 32 purchases in the last two months, 2 X blocks of 6 and one of a portfolio of 10. A friend of mine has also just completed a mixed residential/commercial purchase.
Member Since August 2024 - Comments: 24
8:44 PM, 14th November 2025, About 5 months ago
Reply to the comment left by Mark Alexander – Founder of Property118 at 19:02
Interesting, all the people I speak to are selling up at least some of their stock.
Three estate agents that I deal with have also admitted they are getting a lot of stock on their books from landlords.
They also said that “corporate” landlords are vacuuming up properties too.
Only need to look at the Lloyds group this week to see the so called big boys cleaning up.
Serco ? Councils, just government funded acquisition “company ”
Let’s face it , the government wants control, they don’t want the prs interfering with their grand control plan
Member Since January 2011 - Comments: 12209 - Articles: 1408
9:03 PM, 14th November 2025, About 5 months ago
Reply to the comment left by Imout Ofhere at 14/11/2025 – 20:44
I’ve seen no evidence of large corporates buying private landlord stock. They all build their own.
I also know lots of landlords in their 50’s and 60’s who are selling up, but I’m always intrigued with the stats showing that the total number of private rental properties is increasing.
I would love to read more comments from those who are buying, but maybe they are all too busy to read Property118.
Member Since January 2011 - Comments: 12209 - Articles: 1408
8:35 AM, 15th November 2025, About 5 months ago
Here’s a few more thoughts …
Who are all the quick sale companies selling tenanted properties to?
Why are there now more properties investment companies registered at Companies House than retailers?
Member Since August 2024 - Comments: 24
8:47 AM, 15th November 2025, About 5 months ago
Reply to the comment left by Mark Alexander – Founder of Property118 at 15/11/2025 – 08:35
Think you have answered part of your reply regarding no evidence of corporate buying.
I my area the council are offering incentives to take the private rents over..to what purpose, ?? they have no one to run them….