PRS crisis deepens as landlords increasingly sell up

Renters will increasingly struggle to find somewhere to leave as growing numbers of landlords sell up and leave the private rented sector, research reveals.

The findings from TwentyEA illustrate a mounting crisis as landlords choose to quit and severely reduce the pool of available homes for tenants.

The data shows that 15.6% of new property listings in the first quarter of 2025 were previously rented homes, a sharp rise from 9.8% in the same period of 2024.

In total, 451,154 properties were listed for sale in the first quarter of this year, with 70,542 of these having been rentals.

Landlords are selling to exit

The executive director of TwentyEA, Katy Billany, said: “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 and there’s a common misconception that other landlords will buy their properties and reintroduce them to the lettings market.

“By and large though, this is not what we’re seeing.”

She added: “The rental market is experiencing an accelerated adjustment phase as supply constraints intensify and rental costs continue their upward trajectory ahead of the Renters’ Rights Bill implementation.

“Notably, market indicators have been signalling these shifts prior to the formal introduction of the legislation, reflecting broader underlying dynamics.”

Few properties bought by landlords

TwentyEA says the number of landlords selling marks a continuation of a worrying trend seen in its latest Property & Homemover report.

It notes that in the final quarter of 2024, 12.2% of new listings — equating to 39,684 properties — had been part of the rental market within the past three years.

Compounding the issue, only 2.9% of properties sold in final quarter of last year were reintroduced to the rental market in the first quarter of this year.

It found that just 3,634 homes were snapped up by other landlords.

With roughly half of all listings proceeding to sale, around 18,000 homes are estimated to have exited the PRS since late 2024, intensifying the shortage of accommodation.

Supply of rental homes falls

The supply of properties available to let has also dwindled, dropping by 1% compared to Q1 2024 and plummeting 22% below 2019’s pre-pandemic levels.

Currently, only 284,000 rental homes are available nationwide, a decline of 18% from last year and 23% from 2019.

The firm says that this scarcity is driving rents to new heights, with the average agreed rent now standing at £1,767 per month.

Nearly half (46%) of available rentals are priced above £1,500 per month, while 15% demand upwards of £3,000, rendering most properties unaffordable for many tenants.

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