Landlords quitting at highest rate for a decade

Landlords quitting at highest rate for a decade

Landlords are leaving the UK private rental sector at rates unseen in ten years, with 562 properties exiting daily in the third quarter of 2026. Despite this, rental stock is rising slightly due to new lettings and Build To Rent developments.

Figures from property consultancy TwentyCi reveal a significant increase in landlords exiting the market, with 44,000 properties withdrawn so far in 2026’s third quarter. This compares with 495 properties per day at the same point last year and just 167 per day at the start of the decade.

However, the overall supply of rental properties has grown by 13.6% year on year, reaching its highest level in seven years. The rise is largely driven by new properties coming to market and the expansion of Build To Rent schemes, which are adding volume to the sector.

Details of landlord exits and rental stock changes

TwentyCi’s data shows that while landlords are quitting at a record pace, the total available rental stock has increased by 118,100 properties compared to last year. This growth in supply is most pronounced in lower to mid-price rental brackets, particularly properties renting for £0-£800 and £800-£1,500 per month, which saw supply rises of 14.5% and 16% respectively.

Geographically, stock availability has increased in 10 out of 13 UK regions. Wales leads with a 15.2% increase, while Yorkshire and Inner London have experienced declines of 5.3%. The overall supply growth excludes Northern Ireland, where supply has not risen.

Demand for rental properties is also up, with lets agreed increasing by 3.3% compared to 2025, reaching a seven-year high. The strongest demand growth is in the lower rental price bands, mirroring supply trends. Wales again shows the most significant demand increase at 12.3%, whereas Inner London demand fell by 2%.

Despite these shifts in supply and demand, rental prices remain largely static. The average rent agreed is £1,475 per month, a marginal increase of £4 over the past year. Regional price changes vary, with the North West experiencing the highest inflation at 5.7%, while the East saw a slight price decrease of 0.6%.

Regulatory impact and sector restructuring

Colin Bradshaw, CEO of TwentyCi, attributes the high landlord exit rate in part to the Renters’ Rights Act, which has introduced regulatory and economic pressures making buy-to-let less viable for many. The abolition of fixed-term tenancies under the Act means properties return to the market more frequently, contributing to the increased stock availability despite landlord departures.

The rise in Build To Rent developments is also a key factor in the growing rental stock. These professionally managed schemes are delivering new homes at scale, offsetting losses from smaller landlords leaving the market.

Bradshaw suggests that larger, more professional landlords are adapting by restructuring portfolios and seeking new investment opportunities, potentially weathering the regulatory changes better than smaller landlords.

Context of landlord exits and rental market dynamics

The current wave of landlord departures is the highest recorded in at least ten years, reflecting ongoing challenges in the private rented sector. The Renters’ Rights Act, which came into effect recently, has altered tenancy law by removing fixed-term contracts and introducing stronger tenant protections. These changes have increased operational complexities and reduced certainty for landlords.

Economic factors such as inflation, mortgage costs, and tax changes compound these pressures. Many smaller landlords find the sector less profitable or too risky, prompting sales or withdrawal from lettings altogether.

Simultaneously, the Build To Rent sector has expanded rapidly, supported by institutional investment and government initiatives aimed at increasing housing supply. This sector’s growth helps maintain overall rental stock levels despite individual landlord exits.

Practical implications for landlords and letting agents

For small portfolio landlords, the current environment demands careful review of investment viability. The regulatory burden and economic pressures may justify portfolio downsizing or restructuring. Letting agents should prepare for increased landlord turnover and more frequent property re-lettings as tenancies become shorter and more flexible.

Agents and landlords must also monitor regional variations closely, as supply and demand dynamics differ significantly across the UK. Areas like Wales show strong growth in both supply and demand, while Inner London faces declines, impacting rental strategies and pricing.

Maintaining compliance with the Renters’ Rights Act and other legal obligations remains critical. The frequent turnover of properties requires diligent record-keeping and tenant management to avoid disputes and ensure smooth lettings.

Uncertainties and what to watch next

While the data highlights clear trends, some uncertainties remain. The long-term impact of the Renters’ Rights Act on landlord behaviour and rental market stability is still unfolding. It is unclear how many landlords exiting now might return if conditions improve or if further legislative changes occur.

The growth of Build To Rent may continue to reshape the sector, but its effect on traditional buy-to-let landlords and local rental markets requires ongoing observation. Economic factors such as interest rates, inflation, and housing policy will also influence future landlord decisions and rental stock availability.

Considerations for landlords going forward

Landlords should regularly review their portfolios in light of regulatory changes and market conditions. Assessing the financial viability of properties, understanding regional rental trends, and staying updated on legal obligations under the Renters’ Rights Act are essential steps.

Letting agents can support landlords by providing clear advice on compliance, tenant management, and market positioning. Preparing for more frequent tenancy turnovers and potential rent adjustments will help maintain occupancy and income stability.

Engaging with professional bodies and accessing up-to-date resources will be increasingly important as the sector evolves. Landlords should also consider the benefits of professional management or portfolio diversification to mitigate risks.

Supporting landlords through changing regulations

The Landlord Association (TLA) offers members access to practical compliance resources and tools to manage the challenges posed by recent regulatory changes such as the Renters’ Rights Act. Through TLA membership, landlords and letting agents can explore guidance on tenancy management, record-keeping, and legal compliance to reduce risks associated with higher landlord turnover.

TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help landlords organise portfolios, manage rental documents, and keep evidence of compliance activity. Features under development include tools to record inspections, repairs, and tenant communications, supporting landlords in adapting to more frequent property lettings and regulatory demands.

Members can review TLA’s compliance resources and consider ORBIT BETA access to stay informed and organised amid the sector’s ongoing changes.

As the private rented sector continues to evolve, landlords and agents who proactively engage with emerging tools and guidance will be better positioned to manage risks and seize opportunities.

Sources: Landlord Today