The UK private rented sector is losing an average of 505 properties per day in 2026, representing more than three times the rate recorded in 2020, according to analysis from property data firm TwentyEA.
The company estimates that approximately 181,000 homes left the sector through landlord sales in 2025, up from 111,696 in 2024. Since the start of the decade, TwentyEA calculates that 834,800 properties have exited the private rented sector, representing an 18.6% reduction in rental stock nationally. In London, the decline stands at 14.2%.
Regulatory and financial pressures
The data follows the implementation of the Renters’ Rights Act’s first phase on 1 May, which abolished Section 21 evictions and introduced a new tenancy system in England. However, TwentyEA attributes the landlord exodus to multiple factors including taxation, mortgage costs, regulation and upcoming energy-efficiency requirements.
From April 2027, landlords will face separate property income tax rates of 22%, 42% and 47%. By 1 October 2030, privately rented homes must meet higher energy-efficiency standards, with the government’s impact assessment estimating average expenditure of £5,400 per property for those below the required standard, and up to £10,000 in some cases.
Additional costs ahead
The government plans to begin regional rollout of its mandatory PRS Database from late 2026, requiring landlords to register and pay an annual fee, though the amount remains unconfirmed. A mandatory Landlord Ombudsman is expected to follow in 2028.
Owners of higher-value rental properties in England could face further costs from April 2028 through the High Value Council Tax Surcharge, which will apply to residential properties worth £2m or more. Annual charges will range from £2,500 to £7,500, payable by the property owner rather than the occupier.
Landlord sentiment
Research from Allsop cited in the analysis found that 42% of surveyed landlords said they were unlikely or very unlikely to continue letting, rising to 52% among single-property landlords. Some 30% indicated they intended to sell all their rental properties.
TwentyEA had previously identified signs that the rate of landlord exits was easing, with former rental properties accounting for 10.4% of homes listed for sale in January. However, the latest figures suggest the trend has not reversed, occurring against a backdrop of rising property fall-throughs and declining values in parts of the London market.
The continuing reduction in rental stock raises questions about supply constraints as the sector adjusts to the new regulatory framework. The data covers the whole of the UK, though the Renters’ Rights Act reforms apply only to England.