CLAIM: Landlord exodus to accelerate next year

Legal, financial or regulatory risks mean rental market is reaching a tipping point for many small-scale landlords claims property firm.

Thousands of landlords will leave the private rental sector next year following a turbulent 2025 during which 93,000 buy-to-let investors exited the market, according to Jason Harris-Cohen (pictured) of LandlordBuyer.

The property purchasing firm’s chief says the combination of regulatory reform, financial pressures and growing uncertainty is triggering a sustained shift in the UK housing landscape.

He points to data from a recent English Private Landlord Survey, which reveals the landlord exodus shows no signs of slowing, with 31% planning to reduce the size of their portfolio, and 16% saying they are considering selling all their rental properties within the next two years.

Harris-Cohen says that the Renters’ Rights Act and the ending of no-fault evictions have been a tipping point for many small-scale landlords. He adds that when this is combined with high interest rates, tougher energy efficiency rules (such as EPC targets), and the tightening of local authority, it has become increasingly difficult to operate a profitable rental portfolio.

What we’re seeing now is a wave of private landlords, particularly those with one or two properties, choosing to exit.”

“The 93,000 landlords who left in 2025 were just the start. What we’re seeing now is a wave of private landlords, particularly those with one or two properties, choosing to exit before legal, financial or regulatory risks increase further.

“At LandlordBuyer, we’re seeing more landlords than ever looking to sell tenanted properties quickly, without going down the eviction route. Selling with tenants in place is becoming the norm, not the exception.”

He concludes: “The implications of this shift are far-reaching. With so many landlords planning to downsize or exit, the supply of private rental homes is expected to shrink, putting further pressure on tenants in high-demand areas like London, Bristol, and Manchester. Rent inflation, already running above wage growth, may worsen if more landlords leave the sector without being replaced.”