The exodus of landlords from the UK rental market has finally started to slow down after years of escalating numbers. A new milestone has been reached as more homes are now being purchased by landlords than sold by them, marking a significant shift in market dynamics.
Data from Hamptons reveals that in June 2026, just 9.2% of homes listed for sale were owned by landlords, down from 11.3% in the same month last year. Conversely, landlords accounted for 10.2% of property purchases during the period. The trend reversal is attributed to the introduction of the Renters' Rights Act on May 1, which has altered the risk landscape for landlords considering a sale.
The Act's provision impacting Ground 1A notices has added complexity for landlords. If they fail to find a buyer and serve notice, they now face a mandatory 12-month ban on re-letting the property. Hamptons estimates that if this rule had been in place in 2025, between 80,000 and 100,000 unsold rental homes would have been prevented from returning to the market for at least a year.
Aneisha Beveridge, head of research at Hamptons, pointed out that the balance of risk has shifted. A tougher sales market combined with the re-letting ban makes selling more complicated for landlords. The prospect of an empty property unable to be easily re-letted has made holding onto investment a more attractive option for many.
The slowdown in landlord exodus is most pronounced in areas with high property prices and low yields, such as London and the South of England. In June, 20.3% of homes listed for sale in London had previously been rented within five years, compared to 9.5% in the South East.
The rental market continues to grow robustly, with newly let homes across Great Britain experiencing a 1.6% year-on-year rent increase to an average £1,392 per month in June. This marks the strongest annual rise in rents for 13 months. Existing tenants saw an average rent increase of 5.4%.