Thousands of UK landlords are expected to leave the private rental sector in 2026 following a turbulent year in which approximately 93,000 buy-to-let landlords exited the market, according to property purchasing firm LandlordBuyer.
The combination of regulatory reform, financial pressures and growing uncertainty is triggering a sustained shift in the housing landscape, with no signs of the exodus slowing. A recent English Private Landlord Survey revealed that 31% of landlords plan to reduce their portfolio size, while 16% are considering selling all their rental properties within the next two years.
The Renters' Rights Act, which came into force in late 2025, abolished Section 21 no-fault evictions. While welcomed by tenant advocates, the move has been a tipping point for many small-scale landlords. Combined with high interest rates, tougher energy efficiency rules such as EPC targets, and tightening local authority licensing, operating a profitable rental portfolio is becoming increasingly difficult.
The firm cautions that with so many landlords planning to downsize or exit, the supply of private rental homes is expected to shrink, putting further pressure on tenants in high-demand areas like London, Bristol and Manchester. Rent inflation, already running above wage growth, may worsen if more landlords leave the sector without being replaced.
"The sector is reaching a critical tipping point," said Jason Harris-Cohen, managing director at LandlordBuyer. "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."
LandlordBuyer is seeing more landlords than ever looking to sell tenanted properties quickly without going down the eviction route, Harris-Cohen noted. "Selling with tenants in place is becoming the norm, not the exception."
The shift in strategy reflects rising demand for tenant-friendly property exits, where landlords can sell without serving notice or disrupting tenancy agreements.
