Research carried out by Black & White Bridging has revealed that as many as 93,000 buy-to-let landlords could exit the rental market during 2025. This significant shift highlights the ongoing challenges facing landlords and the wider property sector.
The company’s latest broker insights report gathered views from intermediaries, many of whom believe that the number of landlords will fall by around six per cent before the year ends. This points to a continued decline in landlord participation across the UK.
According to official HMRC figures, there were 2.84 million unincorporated landlords in the country in 2023. Using data from the 2021 English Private Landlord Survey, Black & White Bridging estimates that around 57 per cent of these – approximately 1.62 million landlords – were holding buy-to-let mortgages.
The report further notes that landlord numbers have already dropped by 65,000 between 2023 and 2024. This represents a four per cent reduction within just one year, showing how quickly the sector is changing.
Damien Druce, Chief Operating Officer at Black & White Bridging, commented on the findings, stressing that the results point towards more than 150,000 landlords leaving the market over a two-year period. He also underlined that the pace of this change appears to be accelerating.
He explained that the landlords most likely to sell up are those with smaller portfolios, often just one or two rental properties. For these individuals, the prospect of rising costs combined with constant regulatory adjustments has made buy-to-let investment far less appealing.
For mortgage brokers who largely deal with straightforward or “vanilla” buy-to-let business, this reduction in landlord numbers could be concerning. Fewer landlords could translate into fewer mortgage applications in the most standard areas of the market.
However, Druce suggested that what will remain is a more professional group of landlords. These investors are often better equipped to navigate the challenges of the market and are more open to exploring specialist finance products to help them expand or manage their portfolios.
Professional landlords are typically more willing to consider options such as auction finance, residential bridging loans, or refurbishment bridging. These products allow them to secure properties quickly, carry out any necessary improvements, and then move onto a longer-term buy-to-let mortgage once the property is ready to let.
This shift could also create fresh opportunities for brokers, as many of these specialist products require greater expertise and tailored advice. In this sense, while the overall number of landlords may decline, the role of the broker could remain highly relevant.
The survey also showed that brokers themselves have a mixed outlook for the year ahead. While less than a quarter (23 per cent) believe that landlord numbers will rise in 2025, over half (56 per cent) expect the decline to continue.
These results, gathered during the summer of 2025, paint a clear picture of the uncertainty within the buy-to-let market. Many stakeholders are preparing for further changes in the years ahead.
The findings also reflect a longer-term trend where landlords are reassessing the profitability of property investment. With higher mortgage rates, increased compliance requirements, and greater running costs, many smaller landlords are questioning whether buy-to-let still offers the returns it once did.
On the other hand, the landlords who remain are likely to be more committed to the sector and better prepared to take advantage of opportunities. This could lead to a rental market dominated by larger, more professional investors.
Black & White Bridging continues to position itself as a key provider of bridging loans designed to meet the needs of such landlords. Their focus is on quick and transparent funding solutions, particularly for time-sensitive or more complex cases.
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