Landlords exit market as regulatory pressures rise

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Landlords exit market as regulatory pressures rise

Nearly 700 former homes to rent are listed for sale every day as legislation piles pressure on landlords, according to new data.

Research by Savills reveals that 254,000 previously let buy-to-let homes were listed for sale in the past 12 months to the end of March, equivalent to 697 properties per day.

The amount of buy-to-let stock for sale has increased by 28% compared with March 2024 and sits 9% above levels seen in the year to March 2025.

Whether rental property still stacks up

Savills explains a combination of legislative pressures has caused landlords to weigh up their options.

The estate agents explain: “For many landlords, the Renters’ Rights Act has become a clear point at which to reassess their investment. This has been compounded by fixed-rate mortgages coming to an end and wider regulatory pressures, including higher minimum energy efficiency standards.

“Together, these factors are driving a more fundamental review of whether rental property still stacks up, particularly for smaller, mortgaged landlords.

“We’ve seen a notable increase in Section 21 notices being served, often as a way for landlords to test achievable rents in the open market. However, we would also expect this to translate into more sales over the coming months.”

The findings come as Landlord Action founder Paul Shamplina said on social media he has “never seen so many Section 21s served”, describing the situation as “unprecedented”.

He warned that while the Renters’ Rights Act is intended to offer greater protection for tenants, “it will get worse before it gets better” as landlords sell up.

Broader restructuring of the market

Savills’ research also examined whether buy-to-let properties listed for sale ultimately changed tenure, finding that 14% of those which sold were purchased by other landlords, effectively returning to the private rented sector.

Savills explains: “Looking ahead, refinancing and tenants choosing to move on are likely to become the main sale triggers.

“But with a significant number of homes returning to the rental market under new ownership, it is not just about shrinking supply, but a broader restructuring of the market towards a smaller more committed pool of professional landlords.”

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