The share of homes bought by landlords exceeded the share of homes they sold last month – for the first time since 2019.

Hamptons’ analysis of Connells Group data shows that the pace of landlord sales has slowed in recent months, following a spike in activity in the run-up to the implementation of the Renters’ Rights Act. It believes the larger wave of exits was driven by earlier tax changes and higher mortgage rates.

Nationally, 9% of homes listed for sale had previously been advertised for rent within the last five years - a drop from 11% at the same time last year - while landlords accounted for a relatively muted 10% of all purchases in June.

However, rental reforms are set to make an impact, particularly due to the sluggish flat sales market, it predicts. Landlords who serve a Ground 1A notice to sell now face a mandatory 12-month ban on re-letting the property, even if they are unable to find a buyer, while a slower sales market is also making landlords more cautious about serving notice to sell.

Failed

Hamptons’ analysis of homes listed for sale by landlords in 2025 shows that 51% failed to sell, rising to 60% among flats. Had the new rules been in place last year, an estimated 80,000 to 100,000 unsold rental homes would have been legally barred from returning to the rental market for 12 months, reducing the number of homes available to rent.

Across Great Britain, 24% of flats marketed for sale in June had previously been rented, compared with just 7% of houses.  

Head of research Aneisha Beveridge says, for many, the prospect of being left with an empty property that can’t easily return to the rental market has made holding on to an investment look more attractive.

Signs

“For those landlords who have chosen to sit tight, there are signs that their decision may start to pay off,” adds Beveridge. “Yields have improved over the last couple of years as rents have risen faster than house prices, giving investors more headroom to absorb higher borrowing costs. At the same time, rental growth is picking up again, with rents on newly let homes rising at their fastest pace in more than a year.”

Spicerhaart Corporate Sales, which manages property portfolios and distressed assets for major UK banks, building societies and lenders, reports that leasehold properties now account for more than half (54%) of the stock it manages. It says the current leasehold system is making it increasingly difficult to achieve timely sales, as the average time in possession for leasehold properties is more than 250 days – more than 100 days longer than freehold properties. Leasehold sales also take about eight weeks longer to complete once an offer is accepted.

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