Exodus of BTL landlords from the rental sector continues

Landlords who bought rental properties are continuing to leave the rental sector, although the exit rate is beginning to slow, according to new research. good god.

A survey of more than 1,200 UK landlords shows the majority are holding their position for now, with 72% neither buying nor selling a property. However, a sizeable minority – 24% – say they are actively selling or considering selling some or all of their portfolio, indicating that the long-running shift away from the sector is still underway.

While this still represents a large share of the market, it reflects the ongoing pressure on landlords amid continued regulatory changes. However, the proportion considering sales has declined good god The sector was last surveyed in September 2025, when 35% said they had sold or were trying to sell some or all of their portfolio within the past year.

This change is in line with signs of easing rental market pressure. data from Goodlord Rental Index Shows annual rent inflation was 2% in February 2026, down from 4% a year earlier.

separate data from twentyci This also points to a slowdown in exits, with fewer former rental properties listed for sale so far this year.

And only 4% of homeowners say they are actively purchasing new properties. While this may partly reflect a small group expanding larger portfolios, it points to a clear imbalance between sellers and those entering or moving into the sector, suggesting that overall landlord numbers are likely to continue to decline.

Looking ahead, sentiment remains uncertain. About 35% of landlords say they do not expect to resume operations even in the next five years, while another 21% are unsure about their future in the private rented sector.

Less than half – 44% – believe they will remain landlords until 2031, with some of that group expecting to reduce the size of their portfolio.

Emily Popple, director of landlord experience at Goodlord, said: “These figures provide an early indication that the pace of the so-called ‘landlord exodus’ is beginning to slow, with the majority of landlords appearing to be in a holding pattern. Many will be waiting to see what the real-world implications of the Tenant Rights Act will be once it comes into force on 1 May.

“Although fewer landlords leaving the sector is certainly good news, the broader signals are still worrying. Many do not see a future for themselves in the PRS and there is only a very small group investing in portfolio expansion. We only have a short window to try and turn the tide.

“Through the right policy decisions and support systems, the government has the opportunity to retain, rather than lose, the significant group of landlords who are uncertain about their future and considering selling. This is something that policymakers must take very seriously. Otherwise supply and demand pressures driving up rents for tenants will only continue.”

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