The proportion of landlords selling former rental properties has fallen by almost half over the past year, according to new data from TwentyCi’s Property & Homemover Report, suggesting the sustained exit of buy-to-let investors from the private rented sector may be easing.
The share of homes coming to market that were previously rented dropped from 22.5% in Q1 2025 to 12.4% in Q1 2026, representing a year-on-year reduction of 45%. London recorded the sharpest decline at 51%, with similar falls observed across the UK.
Rental stock continues to contract
Despite the slowdown in landlord sell-offs, the data indicates former rental properties are rarely returning to the lettings market after sale. Of properties sold in Q2 and Q3 2025, only 6% outside London were subsequently re-let, rising to 11% in the capital. This suggests most are being purchased by owner-occupiers rather than other investors, meaning overall private rental stock continues to decline.
The findings emerge as UK property transactions show mixed performance in 2026, with new listings up 5.1% year-on-year in Q1. Transactions were down 3.9% compared with last year but up 10.7% on Q1 2023 and 19.2% on Q1 2024, once the impact of last year’s stamp duty deadline is factored out.
Market headwinds emerge
Colin Bradshaw, chief executive of TwentyCi, said the market was “continuing to tick along nicely” despite global disruption, though he noted initial cooling in London and the South East as fixed mortgage rates have moved back above 5%.
Several challenges are emerging for the sector. Buyer enquiries fell sharply in March, mortgage pricing has become more volatile, and inflation concerns are prompting the Bank of England to hold rates rather than cut. The report expects transactions in 2026 to be broadly similar to 2025 at around 1.2 million, though the outlook depends on whether geopolitical pressures have wider economic impact.
Rental market dynamics
In the lettings market, the number of rental properties coming to market rose by nearly 19% year-on-year, while lets agreed increased by 5.8%. Average rents edged down 2% to £1,450 per month but remain close to record highs, with affordability still a significant constraint for tenants.
The slowdown in landlord exits comes amid ongoing regulatory changes affecting the rental sector, which have been cited by many investors as a key factor in their decision to exit the market in recent years. However, the latest data suggests this trend may be stabilising as market conditions adjust.