"With over 18,000 rental properties lost from the market in just nine months, we’re witnessing one of the most significant contractions in the UK’s private rental sector in decades"
- Jason Harris-Cohen - LandlordBuyers
More than 18,000 rental homes have disappeared from the UK market in just nine months, pushing rents to record levels and intensifying competition for a shrinking number of properties. This shift comes as landlords exit the buy-to-let sector in unprecedented numbers.
The private rental sector is undergoing a significant reduction, with small and mid-sized landlords leaving amid rising expenses, tougher regulations, and economic uncertainty. As the availability of homes decreases, rental markets across the country are overheating, leading to double-digit rent increases in major cities and demand far exceeding supply.
Between October 2024 and June 2025, 18,120 rental properties left the private rental market. In the first quarter of 2025, 15.6% of newly listed homes were previously rentals, a 9% rise compared to 2024. For every buy-to-let property purchased, 5.4 were sold to owner-occupiers. Meanwhile, the UK-wide average rent has climbed to £1,342 per month, marking an 8.9% increase year on year.
The rise in rental prices has affected both tenants and landlords regionally:
Manchester: +12.3% (£1,351 average monthly rent)
Birmingham: +10.7% (£1,192)
Bristol: +11.8% (£1,488)
Leeds: +9.6% (£1,121)
Cardiff: +10.1% (£1,097)
Glasgow: +8.4% (£1,045)
Belfast: +9.8% (£937)
London (outer boroughs): +11.2% (£1,921)
London (inner boroughs): +7.9% (£2,384)
Urban centres and university towns are seeing the fastest rent growth as supply dwindles and landlord investment stalls.
Several factors contribute to landlords’ decisions to leave the market, including:
Loss of mortgage interest relief (Section 24)
The proposed Renters’ Rights Bill, which would ban no-fault evictions and increase compliance requirements
Expensive EPC upgrades and local licensing schemes
Research from the National Residential Landlords Association (NRLA) shows 26% of landlords plan to sell within the next year, while only 6% intend to expand their portfolios.
Jason Harris-Cohen, managing director of Landlord Buyers, explained, “With over 18,000 rental properties lost from the market in just nine months, we’re witnessing one of the most significant contractions in the UK’s private rental sector in decades. Landlords are being squeezed by rising taxes, tightening legislation, and increasing maintenance costs, many feel they have no choice but to sell.
“At Landlord Buyers, we believe there’s a better way to exit the market. Our service allows landlords to sell quickly and discreetly without forcing tenants out of their homes, which is more important than ever as the average rent in the UK hits £1,342 per month and demand for affordable housing soars.”
