One in six rental properties sold as landlords quit market

One in six rental properties sold as landlords quit market

Almost 850,000 homes have left the UK's private rented sector over the last 10 years, representing roughly one in every six rental properties, according to new research from property consultancy TwentyEA.

The firm says the pace of landlord sales accelerated as the Renters Rights Act moved closer to becoming law. The legislation was enacted last year, with the majority of its provisions taking effect in May 2026. During 2025, around 181,000 former rental properties were sold, making it the busiest year for landlords exiting the market.

Despite this trend, TwentyEA reports that the overall supply of rental homes has increased. Rental stock is currently at its highest level in seven years, with available properties up by more than 17% compared with the same point in 2025.

A key factor behind this increase is the continued growth of the Build to Rent sector. During the second quarter of 2026, listings for Build to Rent developments were 22% higher than a year earlier, helping to offset the reduction in homes owned by traditional private landlords.

Nick Huntley, Director at TwentyEA, said that while rising rental supply is a positive sign, it does not fully reflect the challenges facing many letting agents.

He explained that landlords continue to leave the traditional private rented sector, reducing the number of properties available through many agencies. At the same time, the expansion of purpose-built rental developments is introducing additional homes to the market. Huntley believes these developments are beneficial for renters but should complement, rather than replace, the contribution made by private landlords. He added that the strongest rental market is one where both sectors continue to grow together.

As part of its analysis into the early impact of the Renters Rights Act, TwentyEA also examined changes in rental asking prices across the UK.

The findings reveal significant regional variation. Wales recorded the strongest annual rental price growth at 13.9%, followed by the West Midlands (6.8%) and East Midlands (4.3%). More modest increases were seen in Scotland (1.9%), the South East (1.0%) and Inner London (0.4%).

Conversely, several regions experienced falling asking rents. The East of England recorded the largest annual decline, with prices down 7.7%, followed by Yorkshire and the Humber (-4.0%), the North West (-2.4%), Outer London (-2.3%), the North East (-1.6%) and the South West (-0.4%).

TwentyEA says these regional differences reflect the mixed impact of the Renters Rights Act. While restrictions on rent increases and the ban on rental bidding were expected to reduce upward pressure on rents, some landlords may have responded to increased compliance costs by setting higher initial asking rents. The balance between these competing factors has resulted in noticeably different rental price movements across the country.