More landlords weigh up exit as pressures mount
A significant number of landlords are considering leaving the buy-to-let market, according to new data from Aldermore, as economic uncertainty and rising regulation continue to impact the private rental sector.
The research found that nearly a third (31%) of landlords are thinking about selling their rental properties, a trend that could lead to a tightening supply of rental homes and add pressure to tenants already struggling with affordability and availability.
Top reasons cited for potentially selling include rising upkeep expenses and new legislation such as the Renters’ Rights Bill, with 34% pointing to each as key concerns. In addition, recent changes to Stamp Duty rules outlined in the Autumn Budget have led 29% to reassess their portfolios.
Nearly one in three landlords (29%) have already sold some of their properties in the past year, offloading an average of 32% of their holdings.
Despite the challenges, rental demand remains strong. Almost half (49%) of landlords report a rise in tenant interest, but as more property owners consider leaving the market, the availability of rental homes may continue to decline.
This imbalance may impact both property standards and affordability. Around 69% of landlords surveyed believe that more exits from the market could lead to a decline in the quality of housing available. Among renters, 70% of those who recently moved said they faced greater competition for homes. In addition, 27% reported relocating because their landlord sold the property.
Rental affordability is also becoming a concern, with 61% of private tenants saying that future rent hikes could force them to change their living situation significantly, such as moving in with family or seeking larger house shares.
“Year on year, we’re seeing the private rental sector become a more challenging environment, for both landlords and renters,” said Jon Cooper (pictured), director of mortgages at Aldermore. “Increased regulation, high mortgage rates and high maintenance costs mean more landlords are unfortunately being squeezed out of the market. This in turn is impacting renters who are dealing with increased competition for properties in addition to higher rents.”
Despite the current climate, many tenants report positive interactions with landlords. Two-thirds (66%) of renters described their experiences as favourable, and 77% said communication was strong.
However, the narrative surrounding landlords is taking a toll. Among those considering leaving the market, 27% said they feel worn down by what they see as being unfairly blamed for issues in the housing system.
“Our data shows year after year that most landlords have positive relationships with their tenants,” Cooper said. “Looking ahead, we must ensure that the private rental sector remains a viable environment for landlords to operate in, as a continued exodus will place greater strain on an already stretched sector, further impacting tenants.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
