The UK private rented sector is experiencing a significant reduction in available homes, with an average of 505 properties exiting the market daily in 2026. This rate is more than triple that recorded in 2020, according to analysis by property data firm TwentyEA.
Since the beginning of the decade, 834,800 properties have left the private rented sector, leading to an 18.6% decrease in national rental stock. In London, the decline is 14.2%.
TwentyEA attributes this trend to various factors, including taxation, mortgage costs, regulation, and upcoming energy-efficiency requirements. Landlords will face new property income tax rates of 22%, 42%, and 47% from April 2027. By 1 October 2030, privately rented homes must meet higher energy-efficiency standards, with estimated average costs of £5,400 per property for those below standard, potentially reaching £10,000 in some cases.
Further costs are anticipated, including a mandatory PRS Database with an annual fee, expected to roll out regionally from late 2026, and a mandatory Landlord Ombudsman in 2028. Owners of higher-value rental properties in England, worth £2 million or more, could face a High Value Council Tax Surcharge from April 2028, with annual charges ranging from £2,500 to £7,500.
Research cited in the analysis indicates that 42% of surveyed landlords are unlikely or very unlikely to continue letting, a figure that rises to 52% among those owning a single property. Approximately 30% of landlords surveyed intend to sell all their rental properties.