Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.

Landlord Exit Intentions Rise, 27% Now Plan to Leave Sector Entirely

A recent Property118 Landlord Sentiment Survey reports that 27.1% of landlords now intend to leave the private rented sector entirely. More than two-thirds of landlords expect to sell some properties or exit the sector, while fewer than one in ten plan to buy.

The survey, conducted in Q2, found that 67.7% of landlords expect to sell some properties or leave the sector altogether. In contrast, only 9.5% of respondents indicated plans to purchase additional properties. This marks a widening gap, with more than seven landlords planning to contract or exit for every one looking to expand.

The survey methodology changed between Q1 and Q2, with the Q2 survey asking about intentions over a three-year period instead of twelve months. While this longer timeframe partly explains the increase in exit intentions, the trend towards contraction remains clear.

The landlords surveyed are described as conservatively geared, experienced, and financially resilient, suggesting that the exit trend is not driven by distressed sales but by considered decisions to leave the sector.

For letting agents and inventory clerks, these findings highlight a shrinking pool of privately rented homes, particularly in areas where supply is already tight. Each property sold by a departing landlord may leave the rental market, potentially reducing available homes for tenants at a time when social housing waiting lists are high and new supply is limited.

The report notes that two consecutive quarters of data now point to an increasing exit signal from landlords, with the imbalance between sellers and buyers becoming more pronounced.