Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Landlord Sales Slow as Market Adjusts to Renters’ Rights Act
The proportion of homes listed for sale by landlords dropped to 9.2% in June, down from 11.3% a year earlier, according to analysis by Hamptons. The agency said this indicates the recent surge in landlord sales ahead of the Renters’ Rights Act has eased.
Hamptons reported that while the Renters’ Rights Act may have prompted some landlords to sell, earlier tax changes and higher mortgage costs were the main drivers of the larger wave of exits from the private rented sector. June also marked the first time since 2019 that the share of homes bought by landlords (10.2%) exceeded the share sold by them (9.2%).
The introduction of the Renters’ Rights Act on 1st May has changed the risks for landlords considering a sale. Landlords using a Ground 1A notice to regain possession in order to sell now face a mandatory 12-month ban on re-letting the property, even if they fail to find a buyer.
Hamptons’ monthly lettings index found that 51% of rental properties marketed for sale in 2025 did not sell, rising to 60% for flats. The agency estimated that if the new rules had been in force last year, between 80,000 and 100,000 unsold rental homes would have been prevented from returning to the rental market for 12 months.
Landlord exits remain most concentrated in London and the South of England, where higher property prices, lower yields, and mortgage costs continue to affect investor returns. In London, 20.3% of homes listed for sale in June had previously been rented within the last five years, compared with 9.5% in the South East.
Hamptons also reported that rents on newly let homes across Great Britain rose by 1.6% year on year in June to an average of £1,392 a month, the strongest annual increase for 13 months. For existing tenants whose rent increased during the month, the average uplift was 5.4%. The North East recorded the strongest growth, with newly agreed rents up 4.3% year-on-year to £859 per month. Rental growth in Inner London slowed, falling from 1.6% in May to 0.4% in June, while Outer London returned to positive annual growth for the first time in 12 months, with rents up 1.9% year-on-year.
Source: Property Industry Eye