Buy-to-let landlords in the United Kingdom are exiting the market at an unprecedented pace following the introduction of the Renters’ Rights Act, according to recent property data. The legislation, which came into effect in May 2026, expanded tenant protections and made evictions more difficult, prompting many smaller-scale landlords to sell their holdings, particularly in higher-value areas.

An analysis by property data firm TwentyCi found that during the third quarter of 2026, approximately 562 rental properties were sold daily across the UK, totaling around 44,000 over the three-month period. This marks a significant increase from 495 daily sales at the same point the previous year and 167 per day in 2020. David Byers, Deputy Property Editor, noted a particularly sharp decline in rental supply in London, while availability rose in northern regions and areas with generally cheaper properties.

The data reveals a shift in rental property availability based on price and geography. The number of homes in the £1,500 to £3,000 monthly rent bracket fell by 1.1% year-on-year, with a more pronounced 6.5% drop in properties renting above £3,000 per month. Inner London experienced the largest decrease in rental stock at 5.3%, alongside Yorkshire, where recent tax increases have made ownership of holiday lets more costly.

Conversely, rental stock in lower-priced segments has risen. Properties within the £800 to £1,500 rent range saw a 7% year-on-year increase, with Wales seeing a sharp 15.2% rise. Overall, the UK rental market witnessed a 1.3% increase in available stock over the past year. TwentyCi attributes this growth largely to professional landlords and institutional investors focusing on more affordable northern markets, often acquiring multiple properties simultaneously, while smaller landlords in the south are divesting.

The rising supply has also been bolstered by newbuild rental flats, with institutionally funded developments contributing to a 13.6% increase in rental properties available year to date across all price brackets. Colin Bradshaw, chief executive of TwentyCi, highlighted that despite the outflow of smaller landlords, rental stock availability continues to grow, driven in part by the build-to-rent sector and portfolio restructuring by larger landlords who are better positioned to absorb regulatory and economic pressures.

Landlords have cited reduced profitability as a key factor behind the market exit, citing the combined impact of the Renters’ Rights Act, increased stamp duty, and changes to mortgage interest tax relief, which have disproportionately affected owners of higher-value properties, particularly in the southeast.

Bradshaw also noted that the abolition of fixed-term tenancies under the new legislation has increased tenant turnover, leading to more frequent turnover in existing rental properties. This dynamic, alongside new developments, is reshaping the UK’s buy-to-let landscape amid ongoing regulatory and economic shifts.