There has been a notable surge in the number of properties being sold by landlords across the UK. In the first quarter of 2025, data shows that 15.6% of all new property listings were homes that had previously been used as rental properties.
This marks a significant rise when compared to the same period last year. Back in the first quarter of 2024, only 9.8% of newly listed homes were former rentals, highlighting a growing trend of landlords choosing to exit the market.
The data comes from the property consultancy TwentyEA, which closely tracks market activity. According to their findings, a total of 451,154 new property instructions were recorded during Q1 2025. Out of these, 70,542 were homes that had formerly been let out to tenants.
This shift suggests that many landlords are now rethinking their investment strategies. A combination of stricter regulations, increased taxes, and uncertainty in the rental market may be pushing some to sell off part or all of their portfolios.
Such a high percentage of rental properties returning to the market could also influence housing supply, potentially easing pressure on buyers in certain regions. However, it may also contribute to a reduction in available rental stock, especially in areas already facing housing shortages.
The continuing rise in former rental homes being listed for sale will be something to watch closely as the year progresses. It may signal a broader shift in the buy-to-let sector and could influence both the sales and lettings markets throughout 2025.
Recent figures reveal a concerning shift in the UK’s private rental sector. In the final quarter of 2024, around 12.2% of all new property listings were homes that had previously been rented within the last three years. This amounts to 39,684 homes that have exited the private rental market and entered the sales market instead.
This growing trend of landlords selling off their rental properties suggests an increasing number are choosing to step away from buy-to-let altogether. Whether due to tax pressures, changing legislation, or market uncertainty, this shift is starting to have a measurable impact on housing supply.
Further analysis shows that only a small proportion of these sold homes have returned to the rental market. In Q1 2025, just 2.9% of the homes sold in the previous quarter were subsequently let out again. That equates to only 3,634 properties being reabsorbed by landlords and re-listed as rental stock.
With average sales conversion rates suggesting that 50–55% of new property listings go on to be sold, it’s estimated that roughly 18,000 homes have either already left or will soon exit the private rental market following Q4 2024. This ongoing reduction in available rental housing stock continues to place additional strain on tenants and exacerbates the already critical supply issues.
According to TwentyEA, the volume of new rental listings has also seen a decline. In the first quarter of 2025, the number of fresh ‘to let’ instructions fell by 1% compared to the same period last year. More notably, the current supply of rental properties is now 22% below the levels recorded in 2019, before the onset of the COVID-19 pandemic.
These figures reflect a long-term downward trend in rental property availability. As landlords exit the market and fewer investors enter to replace them, renters face reduced choices and increased competition for available homes.
At a national level, the total number of rental properties available across the UK has dropped to just 284,000. This represents an 18% fall compared to Q1 2024 and a 23% decline from pre-pandemic numbers in 2019. It marks yet another record low for the sector, raising questions about the future stability and accessibility of the rental market.
This tightening of supply, combined with strong tenant demand, could continue to push rents higher in the coming months. While this may benefit landlords who remain in the market, it places additional financial pressure on renters, many of whom are already struggling with the cost of living.
Without intervention or incentives to encourage landlords to remain in the sector, the situation is unlikely to improve any time soon. Policymakers and industry stakeholders may need to consider how to strike a better balance between supporting tenants and ensuring the market remains viable for landlords.
Nearly half (46%) of rental properties currently on the market are priced above £1,500 per calendar month, while over 15% come with a monthly rent exceeding £3,000. With the average agreed rental price now sitting at £1,767 per month, it’s clear that many available homes are beyond the reach of most tenants.
Katy Billany, Executive Director at TwentyEA, highlighted the ongoing pressures in the rental market. She pointed out that renters across the UK are facing a severe shortage of available homes, driving up costs and limiting options for many households.
According to Billany, a key issue is the rising number of landlords choosing to sell their properties and exit the private rental sector altogether. She noted a widespread belief that other landlords will simply purchase these homes and return them to the rental market. However, the latest data shows this isn’t typically the case.
In the final quarter of 2024, around 40,000 former rental properties were listed for sale. Yet in the first quarter of 2025, only 3,600 of those were let again, suggesting they had been bought by other landlords. If we assume that 50 to 55% of these listed properties go on to sell, this would indicate that roughly 18,000 homes are either already gone or on track to leave the private rental market.
This trend is contributing to a significant shift in the sector. The supply of rental properties is tightening further, just as demand remains strong. At the same time, rental prices continue to rise, pushing more tenants into financial difficulty.
Billany added that the rental market is currently going through a rapid adjustment period. The squeeze on supply and rising costs are becoming more pronounced as the sector braces for the impact of the upcoming Renters’ Rights Bill.
Interestingly, some of these changes are happening even before the legislation officially comes into effect. This suggests that broader market forces are already reshaping the landscape, rather than the new laws being the sole cause.
Looking ahead, the private rental sector is likely to remain volatile. The current imbalance between supply and demand, combined with external economic pressures and regulatory changes, points to ongoing uncertainty in the short to medium term.
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