More than a quarter of landlords who sold property over the past year did so with tenants still in place, according to research tracking how homes move through the private rented sector.
The Pegasus Insight Landlord Trends survey found that landlords typically sold an average of 1.8 properties with sitting tenants, with occupancy often continuing despite a change of ownership.
30% of sales stay within the rental sector
The data reveals that around 30% of homes sold by landlords were acquired by another landlord – suggesting a meaningful portion of stock is being transferred within the sector rather than leaving it entirely.
However, a larger share of sales involved buyers intending to live in the property. First-time buyers made up 34% of purchases, while a further 29% went to other residential buyers looking for their own home.
Mark Long, founder and director of Pegasus Insight, said: “Landlord sales do not automatically mean a rental property disappears from the sector. In a meaningful minority of cases the property is simply being transferred from one landlord to another and sometimes sold with tenants already in place.”
This follows Residential Landlord’s analysis of buy-to-let lending, which found mortgage activity rising 26% despite exit predictions – suggesting some landlords are expanding even as others sell.
Shrinking PRS raises supply concerns
Despite the proportion of sales remaining within the rental sector, the overall direction points to a shrinking private rented sector. When most landlord sales go to owner-occupiers, the pool of homes available for rent inevitably contracts.
Long added: “Policymakers must recognise the cumulative impact of ever tighter regulation and rising taxation on landlords, particularly smaller operators. Many are deciding that the pressures and uncertainty are no longer worth it.”
The findings align with recent survey data showing landlords increasingly reluctant to expand portfolios, with many consolidating around HMOs or mixed-use properties that offer stronger yields.
The PRS provides homes for around 20% of UK households, meaning policy decisions affecting landlords carry direct consequences for tenant supply and rents.
Opinion
The 30% of sales going to other landlords suggests some resilience in the market – but it is the 63% heading to owner-occupiers that shapes the supply story. As smaller landlords exit, the sector contracts property by property. Whether institutional investors fill the gap remains an open question.
