Exodus of landlords from buy to let market slows down

During the peak period, approximately one in six homes available on the market were ex-rentals. However, January 2026 saw a drop to only 10.4 per cent of homes listed, a figure much closer to the long-term average. This change signifies that landlords who wished to exit the market have largely made their moves, while those remaining are choosing to stay put.

The decision by many landlords to sell has been driven by a combination of regulatory pressure and taxation changes. These challenges prompted a significant sell-off in previous years. The most recent data indicates a marked decrease in the number of rental properties being sold, aligning with a broader trend of market adaptation.

In January 2026, the number of homes advertised for rent reached its highest level since the pandemic began. This influx of rental properties has led to rents stagnating over the past year, a notable contrast to earlier increases. Market analysts highlight that the significant rise in supply is outpacing demand, providing reasons for renters to feel more optimistic about future availability.

Colin Bradshaw, chief executive of TwentyCi, remarked that although landlord sales have declined, the broader impacts of the forthcoming Renters Rights Act remain to be fully understood. This legislation, set to come into force in May, aims to offer renters increased security and will introduce provisions that restrict certain evictions and tenancy conditions.

As the rental market evolves, the landscape may shift further, particularly as landlords reassess their strategies in response to regulatory changes and market dynamics.