The number of properties being sold by landlords has increased significantly, with 15.6% of all new instructions in Q1 2025 having been previously rented homes – a sharp rise from 9.8% in Q1 2024, new data from TwentyEA has revealed.
New instructions for Q1 2025 totalled 451,154 – 70,542, of which were prior rentals or 15.6%.
In research detailed in its latest Property & Homemover Report, TwentyEA, part of the TwentyCi group, found that in Q4 2024 12.2% of all new instructions were properties which had been rented at some point in the last three years within the private rental market. This equated to 39,684 properties.
Of all sold properties in the quarter, only 2.9% were then subsequently let in Q1 2025, meaning 3,634 came back into the rental market – indicating these had been purchased by other landlords.
With approximately 50-55% of new instructions going on to sell, this means around 18,000 properties are likely to or have already left the rental market since Q4 24, exacerbating the supply crisis.
The table below shows the number of previously rented properties coming to market as a percentage of all new instructions and how this trend is increasing over time.
TwentyEA’s analysis also revealed the supply of new ‘to let’ properties fell by 1% in Q1 compared with the prior year and is now 22% lower than the pre-pandemic year of 2019.
The volume of all ‘to let’ homes hit yet another all-time low, with just 284,000 properties currently available across the whole of the UK. This is 18% less than Q1 2024 and 23% lower than pre-pandemic 2019.
Around half (46%) of available properties are listed at prices exceeding £1,500pcm, with over 15% requiring tenants to pay more than £3,000pcm. The average let agreed price has now reached £1,767pcm, making the majority of available properties unaffordable for most tenants.
Katy Billany, executive director of TwentyEA, said: “The rental market remains under significant strain, with tenants across the country facing a chronic shortage of homes.
“Our analysis reveals that a growing number of landlords are selling up to exit the sector and there’s a common misconception that other landlords will buy their properties and reintroduce them to the lettings market. By and large though, this is not what we’re seeing.
“In Q4 2024, approximately 40,000 former rental properties were listed for sale while only 3,600 were let in Q1 25 suggesting they had been purchased by other landlords. If 50-55% of the previous rental homes listed for sale go on to sell, it suggests that around 18,000 homes will exit the private rental sector or have already done so.
“The rental market is experiencing an accelerated adjustment phase as supply constraints intensify and rental costs continue their upward trajectory ahead of the Renters’ Rights Bill implementation. Notably, market indicators have been signalling these shifts prior to the formal introduction of the legislation, reflecting broader underlying dynamics. The private rental sector demonstrates significant volatility, a condition that analysis suggests will persist throughout the near-term planning horizon”.
