No mass exodus of landlords yet – but experts express concern
Nearly a fifth of homes currently listed for sale in Britain were previously rental properties, according to new data from property listing platform Rightmove.
The website reported that 18% of homes now on the market had previously been available to rent, the highest proportion since it began tracking this data 14 years ago.
The figure also marks a significant increase from 2010, when just 8% of homes for sale had formerly been rental properties. The shift reflects a gradual rise over the years rather than a sudden spike, with the previous five-year average sitting at 14%.
London has seen the sharpest shift, with nearly 29% of homes for sale in the capital having been rental properties before. Rightmove said the trend highlights the changing dynamics in the property market, particularly in the capital, where high demand and limited supply have already put significant pressure on both buyers and renters.
“In recent years, it has become more attractive for some landlords to leave the rental sector rather than to continue to invest in it, due to rising costs, taxes, and legislation,” said Tim Bannister (pictured left), director of property science at Rightmove.
“A healthy private rented sector needs landlord investment to provide tenants with a good choice of homes. We’ve seen over the last few years how the supply and demand imbalance can contribute to rising rents, so there is a worry that without encouragement for landlords to stay in rather than leave the rental sector, it is tenants who will pay the price.”
However, Bannister pointed out that the current trend does not yet indicate a mass exodus of landlords from the market. He suggested that while some rental properties may be bought by first-time buyers, others could still be purchased by landlords looking to expand their portfolios, representing “a changing of the guard rather than a complete exit from landlords.”
Still, Chris Norris (pictured right), policy director at the National Residential Landlords Association (NRLA), expressed concerns about the potential effects of this trend on renters.
“Every rental home that is sold simply exacerbates the imbalance between supply and demand,” Norris said. “While some of these properties will inevitably end up on the owner-occupied market, that will be of little comfort to those households struggling to access quality housing.
“What we need is a housing strategy that recognises the need for more of every type of property, including high quality homes for private rent. That’s why the budget needs to announce pro-growth tax plans to meet the needs of renters across the country.”
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.
