A recent survey has revealed that around one in three landlords have sold or attempted to sell their rental properties over the past year.
The findings, published in Goodlord’s latest State of the Lettings Industry report, paint a picture of a rental sector facing growing challenges.
According to the report, many of these difficulties stem from increasing financial strain and tightening regulations, which continue to impact landlords, letting agents, and tenants across the market.
Landlords are disillusioned
Goodlord’s chief executive, William Reeve, said the latest findings highlight a housing market facing “intense and growing pressure.”
He explained that many landlords feel increasingly disillusioned, with the proposed Renters’ Rights Bill pushing some to consider leaving the market altogether.
Reeve also noted that letting agents are under financial strain, facing rising costs and shrinking margins, making it crucial for them to find new income streams and improve efficiency.
He expressed particular concern for tenants, warning that they are already dealing with high rents and limited housing availability.
According to Reeve, the upcoming Renters’ Rights Bill may unintentionally make these challenges worse.
He suggested that the proposed measures—such as limiting advance rent payments, prompting landlords to increase rents, and encouraging more sales—could backfire on renters.
In his view, while the bill aims to safeguard tenants, it could ultimately end up doing the opposite.
Reeve concluded that “Renters’ Rights could very quickly become renters wronged,” if the unintended consequences are not addressed.
35% have sold or tried to
According to new research by Goodlord, 35% of landlords have either sold or tried to sell one or more of their rental properties over the past year.
Of this group, 19% successfully completed sales, while 16% made attempts to sell but did not follow through.
Nearly half of those who sold off part of their portfolio disposed of just one property, whereas 14% sold five or more homes.
The study found that the Renters’ Rights Bill was a key factor behind these decisions, with four out of five landlords citing it as their main reason for exiting or downsizing.
Many expressed concern about the proposed removal of Section 21 ‘no-fault’ evictions, with 80% warning that it would have a negative impact on the private rental market.
Tenants struggle to find homes
The continued decline in available rental homes is driving up competition among tenants across the market.
Around half of renters admitted they found it difficult to secure a property this year, reflecting how demand continues to outpace supply. Two-thirds of letting agents also reported an increase in tenant enquiries, while nearly a third observed a noticeable fall in available listings.
To strengthen their chances of being chosen, about 40% of renters opted to pay more than one month’s rent upfront — a move that will no longer be permitted once the upcoming legislation is enforced.
With over 40% of tenants expecting to remain in rented accommodation for at least the next five years, the strain on both affordability and availability is unlikely to ease any time soon.
Rents could go higher
Goodlord’s latest findings suggest that upcoming changes to rental regulations could end up pushing rents even higher.
The proposed ban on tenants offering more than the listed rent may lead to a new issue known as ‘gazundering’, where landlords deliberately advertise properties at higher initial prices to leave space for negotiation.
According to the research, one in five landlords are already considering setting higher rents to cushion themselves against this potential risk.
At present, around 40% of landlords have chosen not to raise rents over the past year. However, with the new rules allowing rent increases only once per year, many may feel pressured to raise prices more frequently to avoid missing their opportunity.
In addition, 22% of tenants say they would challenge any rent increase, which could result in a surge of tribunal cases and create payment delays across the system.
Periodic tenancies pose a challenge
Goodlord’s nationwide survey of over 2,700 landlords, letting agents, and tenants has revealed a worrying trend in rental affordability and agent earnings.
According to the findings, nearly half of tenants (42%) are spending at least 40% of their income on rent, highlighting the ongoing strain on household finances. The situation is even more severe for those earning £20,000 or less, where the proportion rises sharply to 73%.
The shift towards periodic tenancies under the Renters’ Rights Bill could also create fresh challenges for letting agents. Currently, renewals make up around 27% of agency revenue, and this figure climbs to 37% in London, where the rental market is especially competitive.
Once fixed-term tenancy agreements are phased out, many agencies may face significant income losses unless they quickly adjust their business models and find alternative revenue streams.
While landlord confidence remains notably low—with just 13% expressing a positive outlook—the report found a slight improvement in sentiment among letting agents.
Roughly one in five agents said they feel “somewhat optimistic” about the future of the market, while 7% described themselves as “very optimistic.” This marks a small but encouraging shift after five years of steadily declining confidence across the sector.
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