UK Buy-to-Let Landlord Departures Expected to Rise Further in 2026

The number of landlords exiting the UK’s private rental sector is expected to increase again in 2026, following a difficult year in which around 93,000 buy-to-let landlords sold their properties. LandlordBuyer reports that continued regulatory change, rising costs and prolonged uncertainty are driving a sustained reshaping of the rental market.

Recent research suggests that many landlords are already preparing to scale back. Data from the English Private Landlord Survey shows that:

• 31% of landlords plan to reduce the size of their property portfolios
• 16% are considering selling all of their rental properties within the next two years

The introduction of the Renters’ Rights Act in late 2025 has played a key role in these decisions. The removal of Section 21 ‘no-fault’ evictions has altered the balance of risk for landlords, particularly those with one or two properties, prompting many to reassess their position.

These legislative changes come at a time when landlords are also facing elevated interest rates, tougher energy efficiency standards and increasingly demanding local authority licensing requirements, all of which are placing additional strain on profitability.

Jason Harris-Cohen, Managing Director at LandlordBuyer, comments:

“The sector is reaching a critical tipping point. 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.

At LandlordBuyer, we’re seeing more landlords than ever looking to sell tenanted properties quickly, without going down the eviction route. Selling with tenants in place is becoming the norm, not the exception.”

This trend highlights a growing preference for tenant-conscious exit strategies, allowing landlords to sell properties without terminating existing tenancies or displacing renters.

The broader impact on the rental market could be significant. As more landlords leave and fewer rental homes remain available, pressure is likely to intensify in high-demand cities such as London, Bristol and Manchester. With rents already rising faster than wages, further exits could exacerbate affordability challenges for tenants.