Landlords quitting lettings market at fastest rate in a decade

Landlords quitting lettings market at fastest rate in a decade

New data reveals landlords are exiting the UK private rental sector at unprecedented levels in 2026, with over 560 properties leaving daily. Despite this, overall rental stock is rising due to increased new lettings and Build To Rent developments.

Landlords are leaving the lettings market at the fastest rate recorded in at least ten years. According to figures from property consultancy TwentyCi, during the third quarter of 2026, an average of 562 properties per day have exited the private rental sector, amounting to approximately 44,000 properties so far this year. This represents a significant increase from the same period last year, when the daily exit rate was 495, and a sharp rise compared to the start of the decade, when only 167 properties per day were leaving the market.

Despite this surge in landlords quitting, the total available rental stock has marginally increased. This is largely due to a higher number of properties newly entering the market, including a notable expansion in Build To Rent (BTR) stock. Overall, available rental properties have increased by 1.3% over the past year, reversing previous declines.

Details of rental stock and regional variations

The increase in available rental stock is not uniform across all price bands or regions. The £800 to £1,500 per month bracket has seen a 7% year-on-year growth in stock, while higher price bands have experienced reductions: a 1.1% decline in the £1,500 to £3,000 range and a 6.5% drop in properties above £3,000 per month.

Regionally, 10 out of 13 UK areas have recorded increases in rental stock. Wales leads with a 15.2% rise, while Yorkshire and Inner London have seen decreases of 5.3% each. In terms of supply growth year to date, the UK market has added 118,100 properties available to let, a 13.6% increase compared with the previous year and the highest level in seven years.

The supply increase is strongest in the lower price brackets, with the £0 to £800 and £800 to £1,500 per month ranges growing by 14.5% and 16% respectively. All UK regions except Northern Ireland have seen rising supply, with Wales again showing the largest increase at 26.8%, and Inner London the smallest at 8.8%.

Demand for rental properties, measured by lets agreed, is also up by 3.3% compared to 2025 and is at a seven-year high. Growth in demand is most pronounced in the lower price bands, with the £0 to £800 range increasing by 5.4% and the £800 to £1,500 bracket by 5.2%. Wales is the region with the strongest demand growth, with lets agreed rising 12.3%, while Inner London has seen a 2% decline.

Rental prices have remained largely static, with the average agreed rent at £1,475 per month, a negligible increase of £4 over the last year. Price inflation is mostly confined to northern regions, with the North West experiencing a 5.7% rise, while the East of England is the only region to see a slight price drop of 0.6%.

Impact of the Renters’ Rights Act and sector dynamics

Colin Bradshaw, CEO of TwentyCi, attributes the ongoing exodus of landlords to the continuing fallout from the Renters’ Rights Act. He notes that regulatory and economic pressures are making buy-to-let investments increasingly unviable for many landlords, prompting them to exit the market.

However, Bradshaw points out that despite the large number of landlords leaving, rental stock availability is increasing due to several factors. The Build To Rent sector is contributing substantial new homes to the market. Additionally, larger professional landlords may be restructuring portfolios and seeking new investment opportunities, better able to absorb current pressures.

The abolition of fixed-term tenancies under the Renters’ Rights Act is also influencing market dynamics. With tenants able to move on more frequently, existing rental properties are re-entering the market more often, which may contribute to the increased supply observed.

What this means for landlords and letting agents

For landlords, the data signals a challenging environment where regulatory changes and economic factors are driving many to sell or withdraw properties from the rental sector. Smaller landlords, in particular, may find the current conditions unsustainable, while larger portfolios might be managed more actively to adapt to these pressures.

Letting agents may see a shift in their client base, with more landlords seeking professional management services to navigate the complexities introduced by recent legislation. The rise in Build To Rent stock also suggests a growing presence of institutional landlords in the market, potentially altering competition and tenant expectations.

The static rental prices amid rising supply and demand in lower price brackets indicate affordability remains a concern for many tenants. Landlords should consider how to balance compliance costs and tenant retention strategies in this context.

Uncertainties and areas to watch

While the current figures provide insight into market trends, uncertainties remain. The full impact of the Renters’ Rights Act continues to unfold, and future regulatory changes could further influence landlord behaviour. The exact scale and pace of landlord exits may fluctuate with economic conditions, interest rates, and government policy adjustments.

The evolving Build To Rent sector’s role in the market also warrants attention. Its growth may offset some losses in traditional buy-to-let stock, but it could also reshape rental market dynamics, including tenancy terms and property standards.

Considerations for landlords now

Landlords should review their portfolios carefully in light of these trends. Understanding the financial viability of continuing to let properties under current regulations is crucial. Keeping abreast of compliance requirements, particularly those stemming from the Renters’ Rights Act, will be essential to avoid penalties and maintain good tenant relations.

Letting agents and landlords alike should monitor regional variations in supply and demand to optimise letting strategies. Engaging with professional advice and considering restructuring or professional management may help mitigate risks associated with market volatility.

Keeping your rental properties compliant

TLA membership offers landlords and letting agents access to detailed compliance resources and practical guidance tailored to the evolving regulatory environment highlighted by the Renters’ Rights Act. The association’s new property management and compliance platform, ORBIT, currently in BETA testing, supports members in organising property records, managing rental documents, and recording key compliance actions.

ORBIT aims to assist landlords in maintaining evidence of compliance activities, monitoring regulatory developments, and preparing for new obligations. This can be particularly valuable in a market where regulatory pressures are causing significant shifts in landlord participation. Members can explore TLA membership and access member compliance support to stay informed and organised as the sector adapts.

The platform’s features under development include tools for recording repairs, inspections, and communications, helping landlords and agents maintain comprehensive records that may be critical in a changing legal landscape.

Explore TLA’s compliance resources and learn more about ORBIT BETA access to support your property management needs.

The private rental sector faces ongoing transformation as landlord exits accelerate and new stock sources emerge. Staying informed and proactive will be vital for landlords and agents aiming to sustain their businesses amid these changes.

Sources: Letting Agent Today