The UK’s private rental sector is bracing for another wave of landlord departures in 2026, following a volatile year in which an estimated 93,000 buy-to-let landlords exited the market. According to LandlordBuyer, a convergence of regulatory upheaval, financial strain and long-term uncertainty is reshaping landlord behaviour nationwide.
Recent survey data suggests that many landlords are already planning their exit strategies. The English Private Landlord Survey reveals that:
- Nearly a third of landlords are planning to reduce their portfolios
- One in six is considering selling all rental properties within the next two years
The implementation of the Renters’ Rights Act towards the end of 2025 marked a turning point. By abolishing Section 21 ‘no-fault’ evictions, the legislation has increased perceived risk for landlords, particularly those operating on a small scale.
These pressures are compounded by persistently high borrowing costs, tougher minimum energy efficiency standards, and expanding local authority licensing requirements. Together, these factors are eroding margins and increasing operational complexity.
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, more landlords are opting for tenant-preserving sales, allowing properties to change hands without disrupting existing rental agreements.
This shift is expected to have lasting implications for renters. A reduced supply of private rental homes is likely to exacerbate shortages in high-demand cities such as London, Bristol and Manchester. With rents already rising faster than incomes, further landlord exits could place additional strain on affordability across the market.