An increasing number of UK landlords are expected to step away from the private rental market in 2026, following a difficult 2025 that saw approximately 93,000 buy-to-let landlords sell up. LandlordBuyer suggests that sustained regulatory change and mounting financial pressure are accelerating this structural shift.
Evidence from recent landlord research points to a continued reduction in rental stock. The English Private Landlord Survey shows that:
- 31% of landlords are planning to downsize their portfolios
- 16% are weighing up a complete exit from the rental market within two years
The Renters’ Rights Act, introduced in late 2025, has been a significant factor. The removal of Section 21 ‘no-fault’ evictions has altered the risk landscape for landlords, prompting many to reconsider long-term investment plans.
At the same time, higher interest rates, stricter EPC requirements and expanding licensing obligations are increasing costs and reducing flexibility, particularly for landlords with limited portfolios.
Jason Harris-Cohen, Managing Director at LandlordBuyer, comments:
“The sector is reaching a critical tipping point. The 93,000 landlords who left in 2025 were just the start. What we’re seeing now is a wave of private landlords, particularly those with one or two properties, choosing to exit before legal, financial or regulatory risks increase further.
At LandlordBuyer, we’re seeing more landlords than ever looking to sell tenanted properties quickly, without going down the eviction route. Selling with tenants in place is becoming the norm, not the exception.”
This trend underscores a broader move towards more responsible exit strategies, enabling landlords to sell while maintaining tenancy continuity and minimising disruption for renters.
However, the wider impact could be severe. As landlord numbers fall and fewer rental homes are available, competition is likely to intensify in major cities including London, Bristol and Manchester. With rents already exceeding wage growth, further supply constraints could drive additional rent increases in the years ahead.
