A significant acceleration in landlord exits is expected across the UK in 2026, following a challenging year that saw around 93,000 buy-to-let investors leave the private rental sector. Property acquisition specialist LandlordBuyer reports that mounting regulatory change, rising costs and ongoing uncertainty are driving a long-term transformation in the housing market.
Signs of continued withdrawal are already evident. Findings from the latest English Private Landlord Survey indicate that a substantial share of landlords are preparing to scale back their involvement:
- 31% intend to reduce the number of properties they own
- 16% are considering selling their entire rental portfolio within the next two years
The introduction of the Renters’ Rights Act in late 2025, which removed Section 21 ‘no-fault’ evictions, has played a decisive role in influencing landlord decisions. While the reform has been welcomed by tenant groups, it has prompted many smaller landlords to reassess their future in the sector.
When combined with elevated interest rates, stricter energy efficiency requirements such as EPC compliance, and increasingly complex local authority licensing rules, maintaining profitability has become far more challenging for private landlords.
Jason Harris-Cohen, Managing Director at LandlordBuyer, comments: “The sector is reaching a critical tipping point. 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.”
This evolving approach highlights growing demand for exit routes that avoid evictions and preserve existing tenancies, allowing landlords to sell responsibly while protecting renters.
The wider consequences could be substantial. As more landlords reduce holdings or leave altogether, the supply of rental homes is likely to contract further. In already competitive markets such as London, Bristol and Manchester, reduced availability could intensify pressure on tenants and push rents even higher, particularly as rental costs continue to outpace wage growth.
