The proportion of landlords selling former rental properties has almost halved in the past year, according to TwentyCI’s latest property and homemover report, suggesting that the wave of buy-to-let exits that has characterized the private rented sector in recent years is beginning to subside.
The share of homes coming on the market that were previously rented fell from 22.5% in Q1 2025 to 12.4% in Q1 2026, a 45% year-on-year decrease. The decline was seen across the UK, with the sharpest decline recorded in London – a drop of 51%.
However, the data also indicates that former rental properties are rarely returning to the rental market after being sold. Of properties sold in the second and third quarters of 2025, only 6% outside London were subsequently re-let, rising to 11% in the capital, suggesting the majority is being absorbed by owner-occupiers rather than other investors. As a result, the total stock of private rental housing continues to decline.
The findings come as the broader housing market got off to a relatively stable start to 2026, with new listings up 5.1% year-over-year. Transactions were down 3.9% on the previous year, but increased by 10.7% in the first quarter of 2023 and 19.2% in the first quarter of 2024, once the distorting effect of last year’s stamp duty deadline is taken into account.
TwentyCI chief executive Colin Bradshaw said the market is “faring well” despite global disruption, although he noted some early cooling in London and the South East as fixed mortgage rates have moved above 5%.
Many adverse circumstances are emerging. Buyer inquiries fell sharply in March, mortgage pricing has become more volatile, and inflation concerns are prompting the Bank of England to keep rates on hold rather than cut them.
The report expects transactions in 2026 to be roughly the same as in 2025 – about 1.2 million – but said the outlook depends on whether geopolitical pressures have a broader economic impact.
In the lets market, the number of rental properties coming on the market increased by almost 19% year-on-year, while lets agreements increased by 5.8%. Average rents fell 2% to £1,450 per month, but remain close to record highs, with affordability still a significant barrier for tenants.