0:01 AM, 25th April 2025, About 3 months ago
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The private rented sector is seeing landlords sell up in the face of tighter government regulations and escalating financial pressures, a study reveals.
The property lender Together, says rising taxes, such as Capital Gains Tax, coupled with the potential impact of the Renters’ Rights Bill, are forcing landlords to quit.
However, it says that the sector is seeing a ‘changing of the guard rather than a mass exodus’.
Smaller portfolio landlords are being the worst hit as they sell up part of their portfolio or abandon the market entirely – with bigger landlords buying their properties.
Together’s findings indicate that 12% of landlords plan to sell homes this year – 11% say they intend to exit the sector completely.
Together’s chief commercial officer, Ryan Etchells, said: “BTL is a robust market and while the impact of cost pressures and wider regulatory changes is apparent, we are still seeing a healthy proportion of landlords riding out the wave and expanding their portfolios.
“There will likely be some smaller or amateur landlords who decide to sell off investments or exit completely, but in their position, we are already seeing larger, professional landlords stepping in to seize diversified opportunities.”
He added: “Until the final outcome of the Renters’ Rights Bill is known, there may be a bit more volatility as landlords assess the cost impact to them and their property plans this year.
“But, on the whole, it’s a changing of the guard rather than a mass exodus.”
The research also reveals that 8% of landlords see no viable prospects in the coming year, opting to halt investment plans.
This shift follows a robust 2024, where UK Finance reported a 39% surge in BTL mortgages being agreed in the final quarter compared to the previous year, with their total value rising by 47%.
Landlords exiting the market cite multiple pressures: 14% highlight the burden of Capital Gains Tax, 12% point to climbing interest rates and 8% point to the administrative challenges posed by the Renters’ Rights Bill.
Despite these exits, the market shows resilience, with 29% of landlords planning to grow or diversify their portfolios.
Looking ahead, landlords remaining in the PRS face ongoing hurdles and 17% identify the rising cost of building materials as a primary concern.
While 16% worry about competition from overseas investors and potential policy shifts under the Labour government.
Additionally, 15% of landlords view stamp duty hikes and stricter safety standards as major obstacles.
If you would like to discuss quickly selling your rental property with experts, contact Landlord Sales Agency:
