Seven in ten UK landlords (69%) are planning to sell at least one property in the next 12 months, new research shows.
The findings come amid rising costs, with landlords citing changing regulations, taxation, and a less attractive overall return as key factors driving the decision to sell.
The biggest financial concern for landlords in 2025 is new and changing regulations, with 43% reporting this as their top worry. This includes legislation such as the Renters’ Rights Bill and upcoming tax reporting changes such as Making Tax Digital, which will require some landlords to file quarterly updates using digital software from April 2026.
Almost a quarter of landlords (24%) are also concerned about maintenance costs, which was followed by increased taxes (13%) and rising mortgage interest rates (12%).
When asked why they were planning to sell, some landlords said it is “becoming no longer financially viable” to remain in the rental sector. More than one in ten (14%) reported that they were “very unconfident” in the long-term profitability of being a landlord, with a further 17% feeling “somewhat unconfident”. Just 10% said they are “very confident” in the profitability of their rental businesses.
Landlords have seen mixed results on rental profits in the past 12 months. Around a third (32%) have seen rental profits increase, but 34% have experienced a decrease. Another 34% reported that rental profits had stayed the same.
Only 7% of landlords said they were planning to purchase additional properties and expand their portfolio in the next year.
Mike Parkes, technical director at GoSimpleTax, commented: “These findings show a clear tipping point for landlords as confidence in profitability drops but costs keep rising. Many landlords are scaling back or leaving the market entirely. It’s crucial to acknowledge that new and changing regulation is their number one concern, and that support and guidance is available.
“Some mandatory changes, such as Making Tax Digital, don’t have to be a burden. With around ten months to go, preparing for it early by getting comfortable with digital reporting ahead of time will help landlords to reduce stress and stay compliant. It should be a key consideration for any property professionals thinking about their next steps.”
