Following a turbulent 2025 in which an estimated 93,000 buy-to-let landlords left the private rental sector, further exits are expected in 2026. Property buying firm LandlordBuyer says mounting regulatory pressures and financial challenges are prompting many landlords to reassess their future in the market.
Survey data highlights the scale of the shift underway. According to the English Private Landlord Survey:
- Nearly one-third of landlords are planning to reduce their property holdings
- 16% are considering selling their entire rental portfolio within the next two years
The introduction of the Renters’ Rights Act towards the end of 2025 has been a major catalyst. The abolition of Section 21 ‘no-fault’ evictions has reshaped risk perceptions, particularly among landlords with smaller portfolios who rely on flexibility to manage their investments.
Alongside legislative change, landlords are facing sustained pressure from high borrowing costs, tighter energy efficiency requirements and expanding local authority licensing schemes, all of which are contributing to declining confidence in the sector.
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.”
As a result, selling with tenants in situ is becoming an increasingly common route, allowing landlords to exit without disrupting existing tenancy agreements.
This continued contraction in landlord numbers is expected to reduce the availability of rental homes, intensifying pressure in areas of strong demand such as London, Bristol and Manchester. With rents already rising faster than wages, tenants may face further affordability challenges if the trend continues.
