Hamptons’ analysis of Connells Group data shows that the pace of landlord sales has slowed in recent months, following a spike in activity in the run-up to the implementation of the Renters’ Rights Act (1 May 2026).
Nationally, 9.2% of homes listed for sale last month had previously been advertised for rent within the last five years - a drop from 11.3% at the same time last year (chart 1). This figure is also down from the levels seen earlier in 2026 and in 2021, the latter being the first tax year in which some landlords lost full mortgage interest tax relief.
The Renters' Rights Act has been a long time coming, and most landlords who wanted to leave the sector because of it have probably already done so. While the new rules may have encouraged some landlords to sell, the bigger shift has come from years of tax changes and higher mortgage costs, which have gradually reduced the number of landlords in the market.
June marked a turning point for rental supply, not because landlord buying has risen, but because landlord sales have fallen back. Landlords accounted for a relatively muted 10.2% of all purchases in June 2026, while previously rented homes made up 9.2% of homes listed for sale. This means that, for the first time since 2019, the share of homes bought by landlords exceeded the share of homes sold by them.
The recent slowdown in the number of homes sold by landlords has been driven by three main factors:
1. Many landlords have already sold
Market and regulatory conditions over the last few years have already pushed many landlords out of the market. Tax changes from 2016 onwards, higher interest rates from 2022 and the implementation of the Renters’ Rights Act in 2026 mean many landlords looking to leave have already done so.
While the scale of the landlord sell-off has often been overstated, the private rented sector has not grown in line with the wider housing market. The number of rental homes in England has remained broadly unchanged at 4.8m over the last decade, while the total number of homes has increased by around 2.0m. Most of that additional stock has instead gone into owner occupation.
2. The cost of failing to sell has increased
As of 1 May 2026, landlords who serve a Ground 1A notice to sell – the new formal route used to regain possession of a rental property in order to sell it - face a mandatory 12-month ban on re-letting the property, even if they are unable to find a buyer.
This means a failed sale now comes with a much higher cost. In an already cautious sales market, landlords risk being left with an empty property that cannot be re-let for a year.
Hamptons’ analysis of homes listed for sale by landlords in 2025 shows that 51% failed to sell, rising to 60% among flats. Had the new rules been in place last year, an estimated 80,000 to 100,000 unsold rental homes would have been legally barred from returning to the rental market for 12 months, reducing the number of homes available to rent.
3. A slower sales market
A slower sales market is also making landlords more cautious about serving notice to sell. With properties taking longer to find a buyer, and some failing to achieve their asking price, landlords face a greater risk of being left with an empty home that cannot be easily returned to the rental market.
This challenge is particularly acute in the South of England, where higher prices and lower yields continue to weigh on investor appetite. It is also concentrated among flats, which made up 51% of rental homes listed for sale last year (chart 2) and remain disproportionately exposed to landlord selling.
Across Great Britain, 24.4% of flats marketed for sale in June had previously been rented, compared with just 7.8% of houses. Both investors and owner-occupiers have become more cautious towards flats amid rising service charges.
In June, the typical flat took almost a month longer to sell than a house. The average flat went under offer after 85 days, compared with 59 days for a house.
In London, this has compounded a longer-running decline in landlord sales, following several years of weaker property values and lower transaction volumes.
The Regional Picture
While every region has seen the share of homes listed for sale by landlords fall, landlord exits remain most concentrated in London and the South of England. Higher property prices, lower yields and higher mortgage costs have put the greatest pressure on investor returns in these markets.
In London, one in five homes listed for sale in June had previously been let within the last five years, at 20.3%. This was more than double the share recorded in the South East, where 9.5% of homes listed for sale had previously been rented.
The biggest year-on-year falls in landlord sales have been in Northern markets, where stronger yields mean buy-to-let returns remain more resilient. In these regions, landlords are less exposed to the profit pressures weighing on higher-value Southern markets, making them more likely to hold onto rental stock.
Rental growth
Rental growth on newly let homes has been edging up for the last six months. Across Great Britain, the average rent on a newly let home reached £1,392 per month in June, 1.6% higher than a year earlier (table 1). This is the strongest annual growth recorded for new lets in 13 months.
The recovery has been led by Northern markets, where rents are rising fastest. The North East recorded the strongest growth, with newly agreed rents up 4.3% year-on-year to £859 per month. By contrast, rental growth in Inner London continued to slow, falling from 1.6% in May to 0.4% in June. However, Outer London returned to positive annual growth for the first time in 12 months, with rents up 1.9% year-on-year.
Across the whole rental market, including both new lets and ongoing tenancies, rents rose by 2.2% year-on-year (table 1). This broader measure has also slowed, reflecting the earlier easing in rental growth on new lets.
For existing tenants whose rent increased in June, the average uplift was 5.4%. This is broadly unchanged over the last 12 months, although fewer tenants are seeing their rent rise than before the Renters’ Rights Act came into force.
Scotland recorded the largest rent increases among existing tenants whose rent rose, with an average uplift of 8.0%. After Scotland, the largest increases were typically seen in the North of England and the Midlands, where rents have been rising more quickly than in London and the South.
