UK landlords bought 85,000 fewer properties in the last 12 months as confidence was dented by regulatory uncertainty, higher borrowing costs and slower house price growth.
Acquisitions platform Dwelly reports that landlord purchasing activity has slowed considerably, with an estimated 170,520 landlords buying a property in the last 12 months compared to 255,780 a year earlier.
Dwelly analysed The Mortgage Works data on the percentage of landlords investing in the last 12 months, before applying this to HMRC data on landlord numbers to reveal that just 6% of the UK’s estimated 2.84 million landlords have bought a property in the past year, down from 9% in Q1 2024.
The regional picture shows that the North East remains the most active market, with 17% of the region’s estimated 67,000 landlords buying a property in the last year, down from 22% a year earlier.
The East of England recorded the highest number of landlord purchases with 23,360 transactions. The East Midlands followed with 21,720 purchases, while the South East ranked third at 18,760. The South West saw 18,300 acquisitions, closely followed by the North West with 18,080.
The West Midlands recorded 16,160 purchases, London 14,010, the North East 11,390, and Yorkshire and the Humber 10,860. Wales saw the lowest figure, with just 2,180 purchases.
Dwelly says the figures suggest that concerns around the incoming Renters’ Rights Bill are weighing heavily on landlord intentions to grow their portfolios. With potential changes to tenancy rules, eviction processes and compliance requirements on the horizon, many are waiting to see the final form of the legislation before committing further capital.
Sam Humphreys (pictured), head of M&A at Dwelly, adds: “Despite this uncertainty, the fundamentals of the rental sector remain strong, and once the Renters’ Rights Bill is finalised, we expect many will return to buying, particularly in those regions where rental properties continue to bring strong returns on investment.”
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