The exodus of buy-to-let landlords from the housing market appears to be losing momentum, according to fresh data suggesting that the surge in former rental properties being put up for sale has peaked.
Analysis by TwentyCi shows that in January 2025, 17.4 per cent of all homes newly listed for sale had previously been rental properties, a figure it described as the “peak of the sell-off”.
By last month, that proportion had fallen sharply to 10.4 per cent, bringing it back in line with long-term averages.
Colin Bradshaw, chief executive of TwentyCi, said the data pointed to a turning point after years of steady retreat by landlords. “The wave of exits by buy-to-let landlords seems to have run its course,” he said. “Tax increases, rising costs and the incoming Renters’ Rights Act triggered a prolonged sell-off, but those who wanted to leave have largely done so. Those that remain appear to be staying put.”
Landlords have faced mounting pressure in recent years from tighter regulation and higher taxation, including the phasing out of mortgage interest relief for individuals and rising compliance costs. Many smaller or older landlords have chosen not to expand their portfolios, while some have exited entirely.
At the same time, the rental market is showing signs of increased supply. TwentyCi reported that more homes were advertised for rent last month than in any January since the pandemic.
The biggest growth in availability has been in properties priced below £1,500 per calendar month, while Wales has seen the largest regional increase in rental listings.
Despite the improved supply, rents have remained broadly flat over the past 12 months, reflecting both increased stock and affordability constraints among tenants.
“Renters have reasons to be cautiously optimistic,” Bradshaw said. “Supply growth is currently outpacing demand, which should ease pressure in the short term. But demand remains high overall, and there is still a long way to go.”
The forthcoming Renters’ Rights Act, due to take effect in May, may yet alter the picture further. The legislation will ban so-called “no fault” evictions, allow tenants to leave with two months’ notice at any time and prohibit blanket bans on renters receiving benefits or those with children.
While some landlords accelerated sales ahead of the new rules, Bradshaw cautioned that the full impact of the reforms has yet to emerge. “The true effect of the Renters’ Rights Act is still to be seen, and it could influence rental supply further down the line,” he said.
For now, however, the data suggests that the sharp retreat of buy-to-let landlords that characterised recent years is beginning to stabilise.
