The share of homes listed for sale that were previously rented dropped to 9.2% nationally in June, down from 11.3% last year, according to Hamptons.
Hamptons’ analysis of Connells Group data shows that the pace of landlord sales has slowed in recent months, following a spike in activity in the run-up to the implementation of the Renters’ Rights Act on May 1st.
The 9.2% figure is also down from the levels seen earlier in 2026 and in 2021, the latter being the first tax year in which some landlords lost full mortgage interest tax relief.
This, it said, suggests that while the Renters’ Rights Act may have prompted some landlords to sell, the larger wave of exits appears to have been driven by earlier tax changes and higher mortgage rates.
For the first time since 2019, the share of homes bought by landlords in June exceeded the share of homes sold by them – with landlords accounting for 10.2% of all purchases, while previously rented homes made up 9.2% of homes listed for sale.
MORE CAUTIOUS ABOUT SELLING
As of 1 May 2026, landlords who serve a Ground 1A notice to sell – the new formal route used to regain possession of a rental property in order to sell it – face a mandatory 12-month ban on re-letting the property, even if they are unable to find a buyer.
Hamptons said this means a failed sale now comes with a much higher cost. In an already cautious sales market, landlords risk being left with an empty property that cannot be re-let for a year.
Hamptons’ analysis of homes listed for sale by landlords in 2025 shows that 51% failed to sell, rising to 60% among flats.
Had the new rules been in place last year, an estimated 80,000 to 100,000 unsold rental homes would have been legally barred from returning to the rental market for 12 months, reducing the number of homes available to rent.
The estate agency said a slower sales market is also making landlords more cautious about serving notice to sell.
With properties taking longer to find a buyer, and some failing to achieve their asking price, landlords face a greater risk of being left with an empty home that cannot be easily returned to the rental market.
SITTING TIGHT
Aneisha Beveridge, head of research at Hamptons, said: “The Renters’ Rights Act has been a long time coming, and most landlords who wanted to leave the sector because of it have probably already done so.”
While the new rules may have encouraged some landlords to sell, she said, the bigger shift has come from years of tax changes and higher mortgage costs, which have gradually reduced the number of landlords in the market.
She commented: “What’s changed more recently is the balance of risk. A tougher sales market and the introduction of a 12-month re-letting ban mean selling has become a more complicated proposition for landlords.
“For many, the prospect of being left with an empty property that can’t easily return to the rental market has made holding on to an investment look more attractive.”
She added: “For those landlords who have chosen to sit tight, there are signs that their decision may start to pay off.
“Yields have improved over the last couple of years as rents have risen faster than house prices, giving investors more headroom to absorb higher borrowing costs.
“At the same time, rental growth is picking up again, with rents on newly let homes rising at their fastest pace in more than a year.
“While challenges undoubtedly remain, conditions for landlords arguably look better than they did 12 months ago.”
