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

UK Rental Supply Hits Seven-Year High Despite Landlord Exits

Britain’s private rental sector has reached its highest supply level in seven years, according to new data from TwentyEA’s latest Property and Homemover report. This increase comes despite the loss of almost 850,000 private rental properties over the past decade, with 181,000 sold in 2025 alone—the highest annual volume recorded.

The report states that 18.6% of all private rental sector (PRS) stock has exited the market in the last ten years. While the decline is not solely attributed to the Renters’ Rights Act, the data shows that sales of rental properties accelerated as the legislation approached implementation.

Build-to-Rent Developments Drive Growth

Despite ongoing landlord exits, rental supply has increased by more than 17% in 2026 compared to the previous year. This growth is largely attributed to build-to-rent developments, which saw property listings rise by 22% during the April to June quarter compared to the same period in 2025.

TwentyEA’s director, Nick Huntley, noted that while rental supply has reached a seven-year high, many letting agents are still experiencing reduced stock due to landlords leaving the traditional PRS. Huntley also stated that purpose-built rental housing complements, rather than replaces, the role of private landlords, and that a healthy rental market requires both segments.

Changes in the Estate Agency Sector

The report also highlights shifts in the estate agency market. Online agents now represent 3.6% of property exchanges, down 7% annually. Meanwhile, self-employed agent models have increased their market share by 18.7% year-on-year to 2.5%.

Growth among self-employed agents has been recorded across all price bands, with the strongest increase—22.1% year-on-year—seen in the £350,000 to £1 million price range. Regionally, self-employed agents expanded their presence in all areas except Scotland, where market share declined by 0.5 percentage points. The West Midlands and Wales saw the largest growth at 0.9 percentage points each, with Wales holding the highest presence of self-employed agents at 3.5% market share over the past 12 months.

Market Implications

The data suggests a structural shift in Britain’s rental market, with institutional build-to-rent investment offsetting some of the stock lost from traditional landlords. However, the continued reduction in private landlord participation may have long-term implications for rental availability and pricing, especially in areas with limited build-to-rent development. The rise of self-employed agent models also indicates changing preferences in the property sales sector, particularly in mid to upper-tier price brackets and regions outside Scotland.