Fewer landlords selling as rental stock gets smaller

Fewer landlords selling as rental stock gets smaller

The number of UK landlords listing their former rental properties for sale in the first quarter of this year almost halved compared to early 2025. 

This figure has fallen from 22.5% in Q1 2025 to 12.4% in Q1 2026, according to property data consultancy TwentyCi.

There are stark regional variations in rental properties entering the sales market, but the most significant factor is whether the property is located in London.

The consultancy says that comparing like-for-like, there has been a 41% reduction year on year of landlords intending to exit the market outside of London, with the whole of London itself observing a 51% reduction. 

Taking a closer look at London’s figures, it appears that landlords wishing to exit the market were far more pronounced in Inner London than Outer London. 

It should be noted that while Inner London tops the list, Outer London still ranks second, higher than all other regions in the UK.

When the analysis split the Capital into Inner London and Outer London and compare like-for-like, there has been a 45% reduction year on year of landlords wishing to exit the market in Outer London, whilst Inner London observed a 52% reduction. 

In summary, the number of landlords exiting the market has subsided since Q1 2025, returning to normal levels.

TwentyCi also wanted to test whether landlords’ rental properties were purchased by other landlords, and then re-let.

Of the rental properties sold in Q2-Q3 2025, only 11% came back to the market to rent post the sale transaction, completing by the end of Q1 2026.

Outside of London, 16% of listed properties were former rentals listed by landlords in Q1 2025, and the vast majority would have actually sold the property on that cycle or

subsequent advertising cycles. 

Of the properties sold in Q2-Q3 2025, only 6% returned to the lettings market after the sale transaction was completed by the end of Q1 2026.

The overall conclusion, therefore, is that the stock of private rental properties in the UK has reduced and continues to fall as a result of regulation and taxation changes. 

TwentyCi notes: “This is, and has, occurred at a time when the availability and affordability of private rental stock for tenants are two of the government’s most pressing housing problems.”

This article is taken from Landlord Today