Recent research from lettings platform Goodlord indicates a slowdown in the rate at which landlords are selling their properties, although uncertainty remains high within the sector. While fewer landlords are actively selling compared to last autumn, a significant proportion continue to consider exiting the private rented sector (PRS) as they await the impact of upcoming legislation.

Landlord selling activity declines

Goodlord’s survey of over 1,200 landlords reveals that 72% are currently neither buying nor selling properties. This suggests a holding pattern as many landlords await the introduction of the Renters’ Rights Act, which is set to take effect on 1 May 2026. Currently, 24% of landlords report they are selling or attempting to sell part or all of their portfolio, a decrease from 35% in September 2025 who had sold or tried to sell within the previous year.

Insights from industry experts

Emily Popple, Goodlord’s director of landlord experience, commented on the findings: “These numbers provide initial indications that the pace of the so-called ‘landlord exodus’ has started to ease, with the majority of landlords appearing to be in a holding pattern.” She emphasised that many landlords are waiting to see the practical effects of the Renters’ Rights Act once it comes into force on 1 May.

Popple also highlighted ongoing concerns, noting, “Whilst fewer landlords leaving the sector is definitely good news, the wider signals are still concerning. Far too many don’t see a future for themselves in the PRS and there’s only a very small cohort investing in portfolio expansion. We only have a short window to try and turn the tide.”

Rental market trends

The reduction in landlord selling activity coincides with a slowdown in rental growth. Goodlord’s Rental Index recorded annual rent increases of 2% in February 2026, down from 4% at the same time the previous year. This moderation in rent growth may reflect broader market pressures and could influence landlord decisions regarding portfolio management.

Supporting this trend, data from property analytics firm TwentyCi shows fewer former rental homes being listed for sale so far this year, indicating a reduced flow of stock exiting the sector.

Investment and future intentions

Landlord investment activity remains low, with only 4% currently purchasing new properties. The survey also found that 35% of landlords do not expect to remain in the sector within the next five years, while 21% remain undecided about their future plans. Just 44% believe they will still be landlords by 2031, with some anticipating a reduction in the size of their portfolios over that period.

What this means for landlords

The current pause in landlord selling activity offers a moment of stability for the private rented sector, but the underlying uncertainty signals challenges ahead. The forthcoming Renters’ Rights Act is a key factor influencing landlord decisions, and its implementation will likely shape the sector’s trajectory in the coming years.

Landlords should consider how legislative changes might affect their portfolios and investment strategies. With fewer landlords expanding their holdings and many contemplating exit, the sector may face a tightening of supply, which could impact rental prices and tenant choice. Proactive engagement with new regulations and market conditions will be essential for landlords aiming to sustain their businesses.

Source: Based on reporting from Property118

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