Landlord purchases have climbed to their highest level in a decade although the latest growth in buy-to-let activity is increasingly being driven by landlords buying properties from other landlords rather than new investors entering the market.

Analysis from Hamptons found that landlords accounted for 13.3% of all property purchases across Great Britain between January and April 2026, up from 9.9% during the same period last year and the highest share recorded since 2016.

The estate agency group said the increase comes as investors continue to reposition portfolios ahead of the Renters’ Rights Act and in response to higher mortgage rates and changing profitability across the private rented sector.

However, Hamptons said the figures should not be interpreted as a return to a traditional buy-to-let boom.

STOCK TRANSFER

Instead, the data points to growing levels of stock transfer within the rental sector itself, with landlords increasingly purchasing homes previously owned by other landlords.

A record 23% of homes bought by landlords so far this year had previously been rented out by another investor, up sharply from 16% in 2025 and more than double the 2019-2023 average of 9.9%.

The trend suggests many landlords exiting the market are being replaced by more yield-focused or better-capitalised investors rather than owner-occupiers.

REGIONAL DIFFERENCES

Regional performance also continues to underline the growing divergence between northern and southern buy-to-let markets.

Northern England recorded the strongest investor activity, with landlords accounting for 23.9% of all buyers so far this year compared to 14.5% in 2025.

The North West saw the largest increase, with landlords making up 25.3% of all purchasers – more than double last year’s figure.

But landlord activity across London, the South East, South West and East of England remained comparatively subdued, with investors accounting for just 9.1% of purchases.

STRONGER YIELDS

Hamptons said stronger rental yields in northern regions are continuing to offset higher mortgage rates and increased tax costs, helping sustain investor demand despite tighter affordability conditions.

The report also found a growing shift towards houses rather than flats remaining within the rental market.

Around 60% of previously rented homes purchased by landlords this year were houses, up from 40% five years ago, reflecting changing tenant demand and stronger long-term rental performance outside the flat sector.

REGULATORY IMPACT

At the same time, rental growth accelerated ahead of the Renters’ Rights Act becoming law.

Hamptons found that new-let rents across Great Britain rose 1.9% year-on-year in April to an average of £1,396 per calendar month – the fastest pace of rental growth in almost a year.

Inner London recorded the strongest rental growth, with rents rising 6.7% annually to an average of £2,840 per month.

CHANGING HANDS

Aneisha Beveridge (main picture, inset), head of research at Hamptons, said: “With the Renters’ Rights Act becoming law against a backdrop of rising mortgage rates, some landlords have taken the opportunity to leave the market. Increasingly, though, they’re passing on their properties to other investors.

“This means the recent spike in landlord purchases reflects homes changing hands between investors, rather than the dawn of a new buy-to-let boom.”