Almost 850,000 homes that were once part of the UK’s private rented sector have been sold and not returned to the market over the past 10 years, according to new analysis from TwentyEA.
The property data firm’s latest Property & Homemover report for the second quarter of 2026 found that around 18.6% of private rented sector stock has left the market during the past decade, equating to almost one in five rental properties.
While TwentyEA said the trend cannot be attributed solely to the Renters’ Rights Act, it noted that landlord sales accelerated as the legislation approached implementation.
The highest number of former rental properties were sold during 2025, when almost 181,000 homes left the sector. The Act became law last year, with most of its provisions taking effect on 1 May 2026.
SUPPLY REACHES SEVEN-YEAR HIGH
Despite the continued loss of traditional private landlords, rental supply has increased significantly. TwentyEA found that the number of rental properties available has risen by more than 17% so far in 2026 compared with the same period last year, reaching its highest level for seven years.
The report suggests that the continued growth of purpose-built rental developments has played an important role in offsetting the decline in privately owned rental homes.
Listings for purpose-built rental properties increased by 22% in the second quarter of 2026 compared with the same period a year earlier.
Nick Huntley, director of TwentyEA, said: “While it’s encouraging to see rental supply reach a seven-year high, that doesn’t tell the whole story. Many letting agents are still feeling the effects of landlords leaving the traditional PRS, reducing the stock they have available to market.
“The growth in purpose-built rental housing is helping to bring new homes into the sector, which is positive news for renters, but it complements rather than replaces the role of private landlords.
“The healthiest rental market is one where both parts of the sector are thriving and overall supply continues to grow.”
REGIONAL RENTAL TRENDS
The report also examined rental instruction prices following the introduction of the Renters’ Rights Act.
Wales and the Midlands recorded the strongest rental price inflation, while Scotland, Inner London and the South East experienced more modest increases.
By contrast, the East of England recorded the largest annual fall in instruction prices, down 7.7%, followed by Yorkshire and the Humber, where prices declined by 4%.
TwentyEA said the legislation was expected to have mixed effects on rents. While restrictions on rent increases and the ban on rental bidding were intended to reduce upward pressure, higher compliance costs and increased regulation may have prompted some landlords to raise initial asking rents, contributing to differing regional outcomes.
BUILD-TO-RENT CONTINUES TO COMMAND A PREMIUM
The report found that build-to-rent operators have continued to achieve rental premiums across almost every UK region.
According to TwentyEA, larger institutional landlords are generally better placed than smaller private landlords to absorb the additional regulatory requirements introduced under the Renters’ Rights Act because of their scale and dedicated management resources.
The continued premium achieved by build-to-rent properties reflects ongoing demand for professionally managed rental accommodation despite the changing regulatory environment.
SUPPLY OUTPACES DEMAND
TwentyEA’s analysis of supply and demand found that the number of newly listed rental properties increased across every UK region, with the strongest growth recorded in the East Midlands and Wales.
The report suggests this increase has been driven by continued expansion in the build-to-rent sector, while some landlords may also have delayed decisions until the Renters’ Rights Act came into force before reassessing their portfolios.
Seasonal factors, including households moving ahead of the new school year, together with stronger rental returns in some areas, may also have contributed to increased activity.
Demand rose across almost every region, with Inner London the only exception. However, supply increased more quickly than demand, resulting in the number of homes available to rent rising across 10 of the UK’s 12 regions. Yorkshire and Inner London were the only areas where this trend was not seen.
Huntley said: “The rental market is still very busy, but it’s becoming better balanced. Demand continues to grow in almost every region, yet supply is increasing even faster across most of the country.
“If that trend continues, it should gradually reduce the intense competition we’ve seen over the last few years and create a more stable environment for both renters and letting agents.”
