.avif)
-
17/12/25 3:30 pm
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
.avif)
Across the UK private rented sector (PRS), a clear pattern is emerging: landlords are increasingly choosing to sell rental homes or, in some cases, temporarily leave them unlet rather than continue letting. Rising regulation, higher costs and prolonged uncertainty are reshaping landlord behaviour, tightening supply and intensifying pressure on tenants in an already constrained housing market.
Landlords selling in record numbers
Recent data confirms that landlord sales are running at historically high levels. According to the National Residential Landlords Association (NRLA), 26 % of landlords sold at least some of their rental properties in late 2024, the highest proportion ever recorded, while only a small minority were buying new homes to let.
Independent market analysis supports this trend. Research by TwentyEA, reported by Landlord Today, shows that in Q1 2025, 15.6 % of all new property sales instructions were previously rented homes, up sharply from 9.8 % a year earlier. Crucially, just 2.9 % of those homes were subsequently re-let, indicating that most sold properties are permanently leaving the PRS.
With fewer landlords replacing sold stock, the cumulative effect is a steady contraction in available rental homes reducing choice and increasing competition for tenants across many local markets.
Regulation, costs and uncertainty
A central driver of landlord caution is the changing regulatory environment. The Renters’ Rights Act 2025 has now received Royal Assent and represents one of the most significant reforms of private renting law in decades.
Under the government’s implementation plan:
- Section 21 “no-fault” evictions will be abolished from 1 May 2026
- Fixed-term tenancies will convert to periodic tenancies
- New controls on rent increases and strengthened possession grounds will apply
A full breakdown of timings and measures is set out by the House of Commons Library.
Even though many provisions are not yet in force, uncertainty around future possession rights, enforcement and compliance costs is already influencing behaviour. Research cited by Mortgage Solutions shows that around 73 % of landlords expect the Act to have a negative impact on their letting activity, prompting many to reduce portfolios or exit the sector altogether.
Impact on tenants and the rental market
Landlord sales are now the leading reason tenancies end in the UK. Analysis of official homelessness data by the NRLA shows that the number of households owed a homelessness prevention duty because their landlord sold the property rose by nearly 20 % between late 2024 and early 2025.
Between October and December 2024 alone, more than 12,000 households were owed prevention support following a landlord sale, underlining the scale of disruption caused by the shrinking PRS.
For tenants, this reduction in supply translates into higher rents, fewer available homes and increased competition particularly in high-demand urban and commuter areas.
What this means for the future
David Coughlin, founder and CEO of Landlord Sales Agency, says:
.avif)
“We are seeing far fewer genuinely ‘dormant’ properties. Homes are usually empty only while undergoing refurbishment or being prepared for sale or re-letting. Licensing, compliance and repair costs are absolutely influencing behaviour, with many landlords becoming far more selective or choosing to sell altogether.”
While the Renters’ Rights Act is intended to improve standards and strengthen tenant protections, there is growing concern that the pace and scale of reform may be accelerating landlord exit rather than stabilising the sector.
For policymakers, councils and industry stakeholders, the challenge will be balancing oversight and quality with the need to maintain rental supply. Without that balance, the risk is that well-intentioned reforms continue to reduce available homes, ultimately increasing pressure on tenants and local authorities alike.
Tags:
.avif)
%20(1).png)
.png)
Comments