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Landlord Property Purchases Drop Sharply in 2025

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Thu 22 Jan 2026

Landlord Property Purchases Drop Sharply in 2025

New data shows that buy-to-let activity in Great Britain fell to historically low levels last year, with landlords accounting for only 10.9 % of all property purchases in 2025. This represents a decline from 12 % in 2024 and is the lowest share recorded since tracking began.

The figures come from estate agency Hamptons’ market analysis, which highlights a persistent retreat by investor-landlords from property buying activity. At just 10.9 %, the proportion of homes bought by landlords in 2025 dipped below 11 % for the first time in a full calendar year, reflecting squeezed returns and increased costs for landlords in the current market.

Experts point to several factors contributing to this drop. The higher 5 % stamp duty surcharge on buy-to-let purchases, introduced in recent years, has raised upfront costs for investors. Meanwhile, broader regulatory changes such as the Renters’ Rights Act are adding uncertainty around long-term rental returns and compliance burdens.

Some regions, like the North East of England, remain relatively more attractive for buy-to-let investors, but overall appetite appears subdued compared with previous years. The shift has implications for rental housing supply, as fewer landlords entering the market could tighten stock levels over time.