"Many landlords are scaling back or leaving the market entirely. It’s crucial to acknowledge that new and changing regulation is their number one concern, and that support and guidance are available"
- Mike Parkes - GoSimpleTax
Nearly 70% of UK landlords intend to sell at least one property within the next 12 months, according to new research that highlights growing concerns about profitability in the rental market.
The study points to increasing financial pressures, with landlords naming regulatory changes, taxation, and diminishing returns as the main reasons behind their decisions to exit or downsize.
The top concern for 2025 is new and evolving regulations, cited by 43% of landlords. This includes upcoming legislation like the Renters’ Rights Bill, as well as tax reporting updates such as Making Tax Digital, which will require some landlords to submit quarterly filings using digital software starting April 2026.
Maintenance costs worry 24% of landlords, followed by increased taxes at 13% and higher mortgage interest rates at 12%.
Some landlords say the rental sector is “becoming no longer financially viable.” Over 14% reported feeling “very unconfident” about the long-term profitability of their rental businesses, while 17% described themselves as “somewhat unconfident.” Only 10% expressed being “very confident” in their rental income prospects.
Landlords have experienced mixed results in rental profits over the past year. Around 32% saw profits rise, but 34% reported declines. The remaining 34% said their profits stayed the same.
Just 7% of landlords plan to grow their portfolio by purchasing additional properties over the next year.
“These findings show a clear tipping point for landlords as confidence in profitability drops, but costs keep rising," comments Mike Parkes, technical director at GoSimpleTax. "Many landlords are scaling back or leaving the market entirely. It’s crucial to acknowledge that new and changing regulation is their number one concern, and that support and guidance are available.”
He added, “Some mandatory changes, such as Making Tax Digital, don’t have to be a burden. With around ten months to go, preparing for it early by getting comfortable with digital reporting ahead of time will help landlords reduce stress and stay compliant. It should be a key consideration for any property professional thinking about their next steps.”
