More than half of landlords planning to reduce their property portfolios intend to leave the private rented sector altogether, according to new figures from LandlordBuyer, which point to growing pressure on buy-to-let investors.
The company said 57% of landlords looking to reduce their holdings plan to exit the sector completely rather than simply sell part of their portfolio. It comes as landlords continue to face higher mortgage costs, increased taxation, rising maintenance expenses and significant legislative changes, including the introduction of the Renters’ Rights Act.
LandlordBuyer said many investors are reassessing the long-term viability of buy-to-let despite rental demand remaining strong. Average rents increased by 3.5% in the year to April 2026, reaching £1,381 per month, but the company said rising rental income has not been enough to offset increasing costs for many landlords.
Jason Harris-Cohen, managing director at LandlordBuyer, said: “What makes this statistic so significant is that we’re not simply seeing landlords sell one or two properties. More than half of those reducing their portfolios are looking to leave the sector entirely.
“Many landlords have enjoyed strong returns over the last decade, benefiting from rising property values and consistent rental demand. However, the economics of buy-to-let have changed considerably. The combination of higher borrowing costs, increased regulation and slower capital growth means many investors are reassessing whether the effort and risk are still worthwhile.”
The company said the Renters’ Rights Act has accelerated decision-making for some landlords, with changes including the removal of Section 21 notices and new tenancy rules prompting investors to review their long-term plans. It added that many landlords are now looking to alternative investments or retirement after building up significant equity over a number of years.
Harris-Cohen said: “At LandlordBuyer, we’re speaking to increasing numbers of landlords who have reached a natural decision point.
“They’ve built up significant equity over the years and are now looking at alternative investments, retirement planning or simply reducing the amount of time and responsibility involved in managing property.
“Many are choosing to sell while market conditions remain stable, particularly where they can achieve a quick sale and avoid the uncertainty of future regulatory changes.”