Landlords are holding onto their properties as the re-letting ban imposed under the Renters' Rights Act takes hold. For the first time in seven years, purchases now exceed sales, according to recent data. The ban, which came into effect in May, stipulates that if a landlord evicts tenants with the intention of selling but the sale falls through, they must wait 12 months before re-letting.
The share of homes listed for sale that were previously rented has plummeted to 9.2% nationally in June, down from 11.3% last year and below the peak seen between 2021 and 2022. This reversal in market trends is largely driven by a combination of the re-letting ban and a generally tougher sales market.
Hamptons' head of research, Aneisha Beveridge, notes that while some landlords may have sold ahead of the Act, the current environment has shifted the balance of risk, making holding onto an investment more attractive than navigating a potentially lengthy and uncertain sales process. Analysis suggests 51% of landlord sales in 2025 failed to complete, rising to 60% for flats – a trend that could see tens of thousands of homes removed from the rental market for a year.
With the private rented sector struggling to keep pace with the wider housing market, this could have significant implications. England's rental stock has remained largely static at 4.8 million over the past decade, while total housing stock has grown by approximately 2 million.
Rents on newly let homes are still rising, however – average rents across Great Britain reached £1,392 per month in June, a 1.6% increase compared to last year and the strongest annual growth for new lets in 13 months. Northern markets are driving this recovery, with the North East seeing the strongest growth at 4.3% year-on-year.
The Government's intention behind the Renters' Rights Act was to provide greater security for tenants and address 'no-fault' evictions. However, data suggests that landlords are being deterred from exiting the market due to the re-letting ban – an unexpected consequence of the legislation. This may fuel further debate on the balance between tenant protection and rental supply.