Editor's note: This brief was summarised by The Property AI Team from a report by Property Industry Eye. Read the original article for full details.
Landlord exodus: 505 rental homes leaving the PRS every day, analysis shows
More than 500 rental properties a day are leaving the private rented sector, according to new analysis from property data firm TwentyEA. The firm estimates that 505 rental homes per day have left the sector so far in 2026, a rate more than three times the level recorded in 2020.
The figures cover the whole of the UK, although the Renters' Rights Act reforms referenced in the analysis apply only to England.
Sales remain elevated despite reforms
Landlord sales remain elevated despite the first phase of the Renters' Rights Act taking effect on 1 May. The reforms abolished Section 21 evictions, introduced a new tenancy system and brought in restrictions on rental bidding, among other changes.
TwentyEA estimates that 111,696 homes left the PRS through landlord sales in 2024, rising to around 181,000 in 2025. The firm had previously identified signs that the rate of landlord exits was easing: in January, former rental properties accounted for 10.4% of homes listed for sale. It now estimates that 834,800 properties have left the PRS since the start of the decade, with the sector losing 18.6% of its rental stock nationally and 14.2% in London.
Pressures beyond the Act
The figures do not establish that the Renters' Rights Act caused landlords to sell. TwentyEA instead points to several pressures on landlord returns, including taxation, mortgage costs, regulation and forthcoming energy-efficiency requirements.
Further changes are approaching. The government plans to start the regional rollout of its mandatory PRS Database from late 2026, with landlords required to register and pay an annual fee, the amount of which has yet to be confirmed. The mandatory Landlord Ombudsman is expected to follow in 2028.
From April 2027, landlords will face separate property income tax rates of 22%, 42% and 47%. Privately rented homes must meet higher energy-efficiency standards by 1 October 2030, unless an exemption applies. Landlords may need to spend up to £10,000 per property on qualifying improvements, with the government's impact assessment estimating average expenditure of £5,400 for properties below the required standard.
Owners of higher-value rental properties in England could face another cost from April 2028. The High Value Council Tax Surcharge will apply to residential properties worth £2m or more, with annual charges ranging from £2,500 to £7,500, payable by the property owner rather than the occupier.
What this means for agents
TwentyEA argues that the combined impact of higher costs and tighter regulation could encourage more landlords to sell. Its analysis also cites separate research from Allsop, in which 42% of surveyed landlords said they were unlikely or very unlikely to continue letting, rising to 52% among single-property landlords, while 30% said they intended to sell all their rental properties.
For letting agents and inventory clerks, the figures will add to the debate around rental supply, and the question of whether continuing landlord exits will further constrain stock as the sector adjusts to the new regulatory regime.
Source: Property Industry Eye