A growing number of landlords are selling up, with thousands of former rental properties exiting the private lettings sector, according to new figures that highlight deepening strains in the UK’s housing market.

New data from TwentyEA, part of the TwentyCi group, shows that 15.6% of all new property instructions in the first quarter of 2025 were previously rented homes – up sharply from 9.8% in the same period last year. Out of 451,154 new instructions during the quarter, 70,542 were former rentals.

LANDLORD DISINVESTMENT

The figures highlight the mounting trend of landlord disinvestment. In Q4 2024, 12.2% of all new instructions were homes that had been let within the previous three years, totalling 39,684 properties. Of those sold in that period, just 2.9% – around 3,634 – were subsequently re-let in early 2025, suggesting that only a small fraction are being bought by other landlords.

With approximately 50–55% of new instructions typically going on to complete sales, TwentyEA estimates that around 18,000 properties have likely exited or are set to exit the rental market since late 2024, compounding the ongoing supply crisis.

The supply of new ‘to let’ listings has also continued to decline, falling 1% year-on-year in Q1 2025 and standing 22% below levels seen in 2019, prior to the pandemic.

The total number of properties available to rent across the UK now sits at a historic low of 284,000 – down 18% on last year and 23% below pre-Covid levels.

AFFORDABILITY PRESSURES

Affordability pressures are intensifying alongside the supply crunch. Nearly half (46%) of all available rental homes are now listed at over £1,500 per month, while more than 15% exceed £3,000. The average agreed rent has climbed to £1,767 per month, pushing much of the market beyond the reach of typical tenants.

Katy Billany, Executive Director at TwentyEA, said the rental market is facing a period of pronounced adjustment.

She said: “The sector remains under significant strain, with tenants facing a chronic shortage of homes. A growing number of landlords are choosing to leave the market altogether, and there is a widespread misconception that their properties will simply be acquired by other landlords and re-let. In reality, this is not what we are seeing.

“In Q4 2024, around 40,000 former rental properties were listed for sale, but only around 3,600 were let again in Q1 2025. With just over half of these properties likely to sell, we estimate that around 18,000 homes are disappearing from the rental stock.”

SIGNIFICANT RECALIBRATION

Billany added that the sector is undergoing a “significant recalibration” as it braces for the impending Renters’ Rights Bill and broader structural changes.

“Market indicators have been flagging these shifts well ahead of the legislation’s formal introduction. The private rental sector is now exhibiting substantial volatility – conditions that our analysis suggests are likely to persist over the coming quarters.”