Buy-to-Let Shake-Up: Landlord Exodus Slows
The UK’s buy-to-let sector has been under sustained pressure in recent years, but fresh data suggests that while landlords continue to leave the market, the pace of this so-called “exodus” may finally be beginning to ease.
This shift is worth paying close attention to as it signals changing sentiment among investors and rise of new opportunities.
📊 A Market in “Holding Pattern”
Recent research from Goodlord, based on a survey of over 1,200 landlords across the UK, paints a picture of cautious stability.
The majority of landlords—around 72%—report that they are neither actively buying nor selling properties. Instead, many appear to be adopting a “wait and see” approach, holding onto their portfolios while assessing the direction of the market.
From an estate agency perspective, this reflects a period of strategic pause rather than decisive movement. Landlords are not rushing for the exits at the same pace seen previously, but neither are they expanding with confidence.
📉 Landlords Still Leaving—But More Gradually
Despite this stabilisation, a notable proportion—24%—say they are either selling or considering selling part or all of their portfolio.
While this remains significant, it marks a clear improvement compared to late 2025, when the figure stood at 35%. This suggests that although landlords are still exiting the sector, the urgency to do so has softened. Additional insights from TwentyCi support this trend, showing fewer former rental properties being brought to market for sale in early 2026.
For buyers, this could mean a more measured flow of ex-rental stock, rather than a sudden surge of available properties.
💷 Rental Growth Begins to Stabilise
The shift in landlord behaviour comes alongside easing pressure in the rental market itself.
According to the Goodlord Rental Index, annual rental growth slowed to 2% in February 2026—down from 4% the previous year.
This moderation suggests:
- Tenant affordability is becoming a greater focus
- Rental price growth is cooling after a period of sharp increases
- Supply and demand pressures, while still present, may be starting to rebalance
From a lettings standpoint, this creates a more sustainable environment, though demand for quality rental homes remains strong.
⚖️ A Clear Imbalance: Few Buyers, More Sellers
One of the most telling insights from the data is the lack of new investment entering the sector.
Only 4% of landlords report that they are actively purchasing additional properties. Even allowing for a smaller group of experienced investors expanding portfolios, this is a remarkably low figure.
The implication is clear:
- More landlords are leaving than entering
- Portfolio growth is limited
- Overall landlord numbers are likely to continue declining
For the property market, this imbalance could have long-term consequences—particularly in terms of rental supply.
🏡 What This Means for Buyers and Sellers
From an estate agent’s perspective, these trends present both challenges and opportunities.
For buyers:
- More ex-rental properties may come to market over time
- Sellers may be more motivated, opening the door to negotiation
- Less competition from investor buyers could improve chances of securing a home
For sellers:
- Pricing correctly is essential in a more considered market
- Demand remains, but buyers are increasingly selective
- Well-presented homes continue to perform strongly
🔮 Looking Ahead: Uncertainty Still Lingers
While the pace of landlord exits may be slowing, long-term confidence in the sector remains fragile.
The research indicates that:
- Around 35% of landlords do not expect to remain in the sector within five years
- A further 21% are undecided
- Less than half (44%) believe they will still be landlords by 2031
Even among those planning to stay, many anticipate reducing the size of their portfolios.
This highlights a market still in transition—one where future supply could tighten further if sentiment does not improve.
📜 The Role of Regulation
Much of this uncertainty is being driven by ongoing regulatory change, particularly the upcoming Renters’ Rights Act.
With new rules set to reshape tenant protections and landlord responsibilities, many investors are choosing to pause decisions until the full impact becomes clear.
This is a crucial moment for the sector. Policy decisions made now will likely influence whether landlords remain—or continue to exit—in the years ahead.
🗣️ Industry Insight
Emily Popple of Goodlord highlights that while it’s encouraging to see fewer landlords leaving, the underlying signals remain a concern.
There is a significant proportion of landlords who are uncertain about their future, and only a very small group actively investing in growth.
From an agency standpoint, this reinforces the importance of confidence and clarity. Without the right support and policy environment, the risk is that supply shortages will persist—continuing to place upward pressure on rents.
🤝 Our Take as Estate Agents
In our view, the current market represents a period of recalibration rather than decline.
Yes, the buy-to-let sector is facing challenges—but it is also evolving. For those willing to adapt, opportunities still exist:
- Investors can benefit from less competition
- Buyers may find increased choice from ex-rental stock
- Landlords who remain can operate in a more balanced rental market
The key is informed decision-making, backed by local expertise and a clear understanding of market conditions.
📍 Final Thoughts
The narrative of a “landlord exodus” is still relevant—but it is no longer accelerating at the same pace.
Instead, we are seeing a market pause:
- Landlords are reassessing
- Investment is cautious
- The future direction remains uncertain
For anyone involved in property, this is a moment to stay informed, stay prepared, and seek expert advice.
Because in every shifting market, there are always opportunities for those ready to act.