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BTL landlords continue to flee the rental sector – London Wallet

Mark Helprin by Mark Helprin
April 7, 2026
in Real Estate
BTL landlords continue to flee the rental sector – London Wallet
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Buy-to-let landlords continue to leave the rental sector, though the rate of exits is beginning to slow, according to new research from Goodlord.

A survey of more than 1,200 UK landlords suggests most are holding their position for now, with 72% neither buying nor selling properties. However, a sizeable minority – 24% – say they are actively selling or considering selling part or all of their portfolio, indicating that the long-running shift out of the sector is still underway.

While this still represents a substantial share of the market, it reflects ongoing pressure on landlords amid continued regulatory changes. The proportion considering sales has, however, fallen since Goodlord last surveyed the sector in September 2025, when 35% said they had sold or were trying to sell part or all of their portfolio within the previous year.

The shift is consistent with signs of easing in rental market pressures. Data from the Goodlord Rental Index shows annual rent inflation stood at 2% in February 2026, down from 4% a year earlier.

Separate figures from TwentyCi also point to a slowdown in exits, with fewer former rental properties being listed for sale so far this year.

At the same time, only 4% of landlords say they are actively buying new properties. While this may partly reflect a smaller group expanding larger portfolios, it points to a clear imbalance between those selling and those entering or growing within the sector, suggesting overall landlord numbers are likely to continue declining.

Looking further ahead, sentiment remains uncertain. Around 35% of landlords say they do not expect to still be operating in five years’ time, while a further 21% are undecided about their future in the private rented sector.

Less than half – 44% – believe they will remain landlords by 2031, with some in that group expecting to reduce the size of their portfolios.

Emily Popple, director of landlord experience at Goodlord, said: “These numbers provide initial indications that the pace of the so-called ‘landlord exodus’ has started to ease, with the majority of landlords appearing to be in a holding pattern. Many will be waiting to see what the real world implications of the Renters’ Rights Act are, once it comes into force on May 1.

“Whilst fewer landlords leaving the sector is definitely good news, the wider signals are still concerning. Far too many don’t see a future for themselves in the PRS and there’s only a very small cohort investing in portfolio expansion. We only have a short window to try and turn the tide.

“Through the right policy decisions and support systems, the Government has an opportunity to retain rather than lose the significant cohort of landlords who are on the fence about their future and considering selling up. That’s something policy makers should take very seriously. Otherwise the supply and demand pressures pushing up rents for tenants will only persist.”

 



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