Although there are different stories swirling around the industry, landlords quitting remains the overriding theme. One of the most recent surveys, conducted by Aldermore, revealed almost 1 in 3 landlords are considering leaving the private rented sector. Worryingly, nearly a third of investors have already begun disposing of their property assets.
Dumping & decreasing rentals
Landlords selling up was also one of the themes documented in the fourth edition of Handelsbanken’s annual Property Investor Report. Of those landlords questioned, 15% said they would dispose of all their property investments, while 7% commented they would decrease the size of their portfolio.
Backing up the claims above are the results of a survey conducted by buy-to-let mortgage lender, Together. When it questioned 1,000 landlords, it found regulations such as the upcoming Renters’ Reform Bill, will force 11% of landlords to exit the market altogether, with 12% at least set to offload properties this year.
The sentiment was mirrored when SpareRoom surveyed 821 landlords in May 2025. Landlords quitting was evidenced quite clearly, with 29% of property investors planning to leave the rental market and 25% planning to reduce their portfolio size.
Cashing in on spectacular increases
Rising costs, increasing compliance and more red tape are repeatedly cited as reasons for landlords quitting, so who can blame people for turning to simpler investment vehicles? Many landlords selling up will be cashing in on house prices that have risen more than 70% between 2013 and 2023, hopefully releasing equity.
The SpareRoom survey gave us an indication of where landlords are headed next. Some can’t quite break ties with property, with an average of 3% choosing to sell up and reinvest in holiday and short lets. This new investment strategy was most popular with landlords among held between 1 and 9 rental properties.
Reducing risk & exposure
Those still attracted to property but who want to move away from residential landlord status – and all the responsibilities that come with it – are opting for REITs (real estate investment trusts).
You can buy shares in REITs on major stock exchanges or invest in REIT mutual funds, which mean the investor never personally owns a property but enjoys the returns. REITs also allow investors to diversify, with the ability to spread funds across retail, commercial, warehouse and even datacentre industries, for example.
Returning to stocks & shares
Landlords selling up to fund retirement or to keep a second income stream are also turning to stocks and shares ISAs as they are a simpler, tax-efficient option. Gone are property management problems and ever-changing legislation, in favour of better liquidity and flexibility.
Hands off investments
Passive income is definitely the buzzword among landlords selling up, with many now preferring the ‘invest once and sit back’ strategy that buying stocks can afford.
Investing profit from a buy-to-let sale into the highest-yielding, large-cap companies on the London Stock Exchange is yielding around 8%. This far outweighs the UK’s average rental yield, which was 5.37% at the end of 2024, according to property investment company Joseph Mews.
The boldest investment moves are coming from landlords selling up to invest in cryptocurrency. New research by Matrixport, produced by FT Longitude, revealed young investors are looking for riskier, more volatile investment strategies that offer quick rewards.
Unlike property investment, which usually relies on long-term appreciation and the ability to fall in line with strict compliance, those taking part in the research felt a ‘disillusionment with traditional finance’ and were more likely to ‘appreciate crypto’s lawlessness’.
Heavy for metals
At the other end of the scale to cryptocurrency are traditional, tangible assets, which are back in fashion for their steadfastness. However archaic its sounds, investing in precious metals shouldn’t be dismissed as UK denomination gold, silver and platinum bullion coins (not bars) are CGT (capital gains tax) exempt. You can buy precious metals from The Royal Mint and keep large amounts in its vault.
Some landlords selling up are taking a different path to invest in antiques and art, enjoying their purchase in a way they never could with property. Wine is another popular investment class but investors do need to avoid the temptation of partaking in a tipple.
Reinvesting in your plans?
If you have been encouraged to exit the private rental sector and invest your money elsewhere, why wait? You can sell rental property with tenants to LandlordBuyer and achieve completion - with cash in the bank – in as little as 42 days.
Request your no-obligation valuation here or contact us about selling your buy-to-let without waiting for your tenants to leave.