The number of landlords selling their buy-to-lets has hit a new peak. The start of 2025 saw a spike in landlord-driven property listings, with TwentyCi data confirming 25,049 homes listed for sale in January previously operated as rentals. This equated to 17.4% of all new listings – a figure that was almost 50% up when compared to the previous year’s data.
The report confirms a persistent trend – landlords have fallen out of love with lettings. The last Rightmove Rental Trends Tracker, reflecting activity in Q4 of 2024, found an average of 15% of homes for sale were previously rented out. This figure had increased from 13% in 2023.
TwentyCi also confirmed that landlord-to-landlord sales are just not happening. In 2024, 111,696 former rentals were snapped up by owner occupiers, disappearing from the buy-to-let market altogether. So, why are landlords leaving the private rental market at an alarming rate?
- Rent inflation plummets: the latest rental report from Zoopla provides a critical snapshot of the current private rental market. The port says annual rent inflation for new lets is running at its lowest level for 3.5 years.
Although rent paid by new tenants is still increasing in cost, values have crept up by just 3% over the last 12 months. For comparison, a year ago rents were rising by 7.4% annually. Taking a longer term retrospective, Zoopla found rents rose 27% between 2021 and December 2024.
The timing couldn’t be worse, with thousands of landlords facing the end of favourable fixed-rate, buy-to-let mortgages. For many, there will be a negative disparity between how much they can charge tenants and the affordability of their new mortgage repayments. - Tenants have more choice: plummeting rent inflation is due, in part, to a greater choice of properties to rent. Zoopla’s March 2025 report found there are now 11% more homes for renters to choose from, which is limiting how aggressively landlords can price their buy-to-lets.
- It’s now cheaper to buy: first-time buyer mortgage repayments (£1,038 per month) are now 20% lower than average rents (£1,248 per month). This Zoopla statistic is a real headline grabber and it’s now cheaper to buy than rent in all but one UK region, which leads us on to the next point.
- Demand is dropping: although more renters may convert to homeowner status to save money, other renters are choosing to stay put and not shop around for a new rental. Analysis from Rightmove found the number of tenants looking to move home dropped 16% in the year to December 2024. Zoopla was in agreement, finding a 17% decrease in rental demand.
- Stamp duty bills are rising: landlords whose plan was to expand their portfolios are now subject to more costly stamp duty bills – ones that will rise again on 1st April 2025. Property investors are, understandably, turning their attention elsewhere as profitability is compromised.
- Incoming legislation is close: the Renters’ Rights Bill will herald a new dawn for the private rental sector, with tenants gaining increased powers. Extra red tape will give landlords an instant headache, especially for ‘accidental’ and self-managing property investors.
If you are one of the thousands of landlords considering exiting the buy-to-let market, a quick disposal is not always possible. Selling on the open market is taking an average of 64 days just to find a buyer, with a lengthy conveyancing process to follow.
Sell within 7 days
Alternatively, start a cash sale to LandlordBuyer and you can receive an instant offer, exchange within 7 days and complete quickly after. Sell house fast in 2025 and free equity to enjoy life or invest elsewhere. Contact us if you'd like to discuss the specific details of your property sale.