Over 18,000 rental homes have been removed from the UK market in less than a year, causing rents to surge to unprecedented levels and intensifying competition among tenants as buy-to-let investors exit the sector en masse.
The private rental landscape is rapidly contracting, driven by the mass departure of smaller and mid-level landlords grappling with surging costs, tighter legal frameworks, and ongoing economic uncertainty. As housing stock diminishes, regional markets are overheating, witnessing steep double-digit rental increases and a severe mismatch between supply and demand.
- 18,120 rental homes exited the private rental market between October 2024 and June 2025
- 15.6% of newly listed homes in Q1 2025 were former rentals. A 9% increase from the 2024
- 5.4:1 ratio: for every 1 buy-to-let property purchased, 5.4 were sold to owner-occupiers
- UK-wide average rent: £1,342/month, up 8.9% year-on-year
From a regional perspective, the annual increases in monthly private rental prices have had negative impacts on both tenants and landlords:
Regional Rent Growth Highlights (YoY, Q2 2025):
- Manchester: +12.3% (£1,351 avg. monthly rent)
- Birmingham: +10.7% (£1,192)
- Bristol: +11.8% (£1,488)
- Leeds: +9.6% (£1,121)
- Cardiff: +10.1% (£1,097)
- Glasgow: +8.4% (£1,045)
- Belfast: +9.8% (£937)
- London (Outer Boroughs): +11.2% (£1,921)
- London (Inner Boroughs): +7.9% (£2,384)
Rents are climbing fastest in urban centres and university towns, where supply is being stripped away and new landlord investment has stalled.
Jason Harris-Cohen, Managing Director of Landlord Buyers said: “With over 18,000 rental properties lost from the market in just nine months, we’re witnessing one of the most significant contractions in the UK’s private rental sector in decades. Landlords are being squeezed by rising taxes, tightening legislation, and increasing maintenance costs, many feel they have no choice but to sell.
At LandlordBuyers, we believe there’s a better way to exit the market. Our service allows landlords to sell quickly and discreetly without forcing tenants out of their homes, which is more important than ever as the average rent in the UK hits £1,342 per month and demand for affordable housing soars.”
A mix of rising costs and regulatory fatigue is pushing many landlords toward the exit:
- Loss of mortgage interest relief (Section 24)
- Proposed Renters’ Rights Bill banning no-fault evictions and increasing compliance
- Costly EPC upgrades and local licensing schemes
According to NRLA research, 26% of landlords plan to sell in the next 12 months, while just 6% intend to buy more properties.
