Data from a recent English Private Landlord Survey revealed that 31% of landlords plan to reduce the size of their portfolio, while 16% said they are considering selling all their rental properties within the next two years

Thousands of UK landlords are expected to leave the private rental sector in 2026, according to property purchasing firm LandlordBuyer.

The firm said that the combination of regulatory reform, financial pressures, and growing uncertainty is triggering a sustained shift in the UK housing landscape.

Data from a recent English Private Landlord Survey revealed that 31% of landlords plan to reduce the size of their portfolio, while 16% said they are considering selling all their rental properties within the next two years.

The Renters’ Rights Act, which came into force in late 2025, abolished Section 21 ‘no-fault’ evictions, a move that, while welcomed by tenant advocates, has named as a tipping point for many small-scale landlords.

However, landlords that remain are enjoying rental yields at a record high, according to research published this week by Pegasus Insight.

LandlordBuyer managing director Jason Harris-Cohen said: The sector is reaching a critical tipping point. The 93,000 landlords who left in 2025 were just the start. What we’re seeing now is a wave of private landlords, particularly those with one or two properties, choosing to exit before legal, financial or regulatory risks increase further.

At LandlordBuyer, we’re seeing more landlords than ever looking to sell tenanted properties quickly, without going down the eviction route. Selling with tenants in place is becoming the norm, not the exception, he said.

The shift in strategy reflects a rising demand for tenant-friendly property exits, where landlords can sell without serving notice or disrupting tenancy agreements, he said.

He added: Rent inflation, already running above wage growth, may worsen if more landlords leave the sector without being replaced.