The UK's rental sector has been plagued by a significant exodus of private landlords over the past decade, with nearly 850,000 properties sold off. A staggering 181,000 rental homes left the market in 2025 alone – the highest annual volume ever recorded – with many attributing this mass departure to fears over the Renters' Rights Act.
Despite this unprecedented loss of traditional private landlords, the UK's overall rental supply has unexpectedly surged to a seven-year high in 2026, increasing by more than 17% compared to the previous year. However, this growth is not driven by existing landlords expanding their portfolios but rather by the rapid expansion of build-to-rent developments – their property listings jumping by 22% in the April to June quarter compared to the same period in 2025.
Industry experts welcome the boost in overall rental supply, but caution that it masks ongoing challenges for letting agents. These agents are struggling with reduced inventory from traditional private landlords, which is impacting the diversity and availability of rental homes. A thriving rental market requires a balance between private landlords and purpose-built housing, with each segment playing a vital complementary role.
The shift in the rental landscape is also reflected in the estate agency sector, where online agents have seen their share of property exchanges decline by 7% year-on-year – now representing just 3.6% of the market. In contrast, self-employed agent models have experienced significant growth, with their market share increasing by 18.7% annually to 2.5%. This expansion is particularly notable for high-end properties priced above £200,000, with those in the £350,000 to £1 million bracket experiencing a surge of 22.1% year-on-year.
Regionally, self-employed agents have expanded their presence across most of the UK, with the West Midlands and Wales showing the largest growth – each increasing by 0.9 percentage points. Wales now boasts the strongest presence of self-employed agents, holding a 3.5% market share over the last 12 months, while Scotland was the only region to see a slight decline in their market share.