Thousands of British landlords are expected to leave the private rental sector by 2026, according to property buying company LandlordBuyer.
The company said the combination of regulatory reform, financial pressure and growing uncertainty is driving a sustained shift in the UK housing landscape.
Data from a recent UK Private Landlord Survey shows that 31% of landlords plan to reduce the size of their portfolio, while 16% say they are considering selling all their rental properties within the next two years.
The Renters’ Rights Act, which came into effect in late 2025, abolished Section 21 “no-fault” evictions, a move that, while welcomed by tenant advocates, has proven to be a tipping point for many small-scale landlords.
However, those landlords who stay are benefiting from record rental yields, according to research published this week by Pegasus Insight.
Jason Harris-Cohen, director of LandlordBuyer, said: “The sector is reaching a crucial tipping point. The 93,000 landlords leaving in 2025 was just the start. What we are seeing now is a wave of private landlords, especially those with one or two properties, choosing to leave before legal, financial or regulatory risks increase further.
“At LandlordBuyer, we see more landlords than ever looking to sell their rental properties quickly, without going down the eviction route. Selling with existing tenants is becoming the norm, not the exception.”