Nearly 1 in 5 landlords planning to exit the market entirely

A more concerning signal is now emerging from the UK private rented sector, and it goes beyond portfolio adjustments. According to the Property118 Landlord Sentiment Survey Q1 2026, a significant proportion of landlords are not simply reducing their exposure, they are considering leaving the market altogether.

Based on 2,380 completed responses, nearly one in five landlords indicated that they are planning a full exit from the sector. You can review the full dataset here.

The implication is clear: this is not just a rebalancing, it is a withdrawal.

A quiet but meaningful shift

Much of the public discussion around landlords has focused on regulatory change, tax pressure and tenant protections. What has been less visible is how landlords are actually responding in practice. This data provides a clearer answer.

While some landlords are choosing to hold or gradually reduce their portfolios, a notable proportion have reached a different conclusion. Rather than adapting further, they are choosing to step away entirely.

This is not happening loudly, and it is not being driven by panic. It is happening quietly, through individual decisions that, when viewed collectively, begin to form a clear pattern.

Who is leaving, and why it matters

The survey shows that the landlord base is heavily weighted towards older investors, with the majority aged 56 and above. This context matters when interpreting exit intentions.

For many, the decision to leave is not reactive, it is rational. After decades of building portfolios, many landlords are now reassessing whether the current environment justifies continued involvement. Regulatory complexity, shifting tax treatment and changing risk dynamics all play a role, but the underlying driver is often simpler; control. At a certain stage, landlords begin to prioritise certainty and simplicity over further growth.

Not distress, but decision

One of the more revealing aspects of the survey findings is that many of those considering exit are not highly leveraged. A large proportion of respondents report loan-to-value ratios below 50%, with a significant number owning properties outright. This suggests that exits are not being forced by financial pressure, but chosen as part of a wider strategic reassessment. This distinction is important because it points to a sector where experienced landlords are stepping back not because they have to, but because they want to.

Implications for housing supply

If even a portion of these intended exits materialise, the impact on housing supply could be significant. Properties leaving the rental sector do not automatically return as rental stock. In many cases, they are sold to owner-occupiers, reducing the number of homes available to rent. At the same time, as highlighted in the wider survey results, relatively few landlords are planning to expand. The combination of these two forces, increased exits and limited new investment, creates a clear directional pressure.

A turning point, not a temporary phase

This survey represents the first in a planned quarterly series, meaning these findings provide an early indication of sentiment rather than a one-off snapshot. However, the scale of the response and the consistency of the data suggest that this is not a temporary fluctuation. It may instead represent the early stages of a broader transition in how landlords engage with the private rented sector.

For now, one conclusion stands out: a growing proportion of landlords are not adjusting their strategy, they are choosing to leave the market altogether.

A conversation worth having?

If you are weighing up your own strategy, whether that’s to sell, expand, or restructure to improve profitibility, it is worth having a discussion with a Property118 consultant to take a closer look at how your portfolio is structured as a whole now, and to forecast the outcomes based on multiple scenario’s.

These conversations are typically most useful for landlords with established portfolios and relatively modest borrowing who are beginning to reflect on how their assets could work more effectively in the years ahead.