A quarter of landlords are actively selling or looking to sell some or all of their portfolio, according to new research that suggests the sector has entered a wait-and-see phase ahead of the Renters’ Rights Act.
A survey of more than 1,200 landlords by letting platform Goodlord found that 24 percent are either offloading properties or actively trying to do so. More than a third – 35 percent – do not believe they will still be a landlord in five years.
Most landlords in holding pattern
The data reveals a market largely frozen in place. Some 72 percent of landlords said they are neither selling stock nor attempting to buy new rental properties. Just 4 percent described themselves as actively investing.
While some of this could reflect a smaller cohort of landlords acquiring bigger portfolios, Goodlord says the imbalance indicates the number of landlords selling will continue to outpace those joining the sector or expanding.
This follows Residential Landlord’s analysis showing limited company landlords now account for 43 percent of BTL purchases, suggesting those remaining in the market are increasingly professionalising their operations.
Sentiment improves slightly from autumn
The figures do show some improvement compared to September, when 35 percent said they had sold or actively tried to sell some or all of their portfolio in the previous 12 months. The current 24 percent figure suggests the pace of exits may be slowing.
However, 21 percent remain undecided about their future in the sector, while only 44 percent believe they will still be landlords by 2031 – and some of those expect to have smaller portfolios.
Emily Popple, director of landlord experience at Goodlord, said many landlords are waiting to see the real-world implications of the Renters’ Rights Act before making decisions.
“Through the right policy decisions and support systems, the government has an opportunity to retain rather than lose the significant cohort of landlords who are on the fence about their future and considering selling up. That’s something policy makers should take very seriously. Otherwise, the supply and demand pressures pushing up rents for tenants will only persist.”
The research adds to evidence that landlords are shifting strategies rather than simply exiting, with many moving into HMOs or mixed-use properties where yields remain stronger.
Opinion
The holding pattern is understandable given the regulatory uncertainty. Landlords who have weathered multiple policy changes may simply be waiting for clarity before committing to buy, sell or hold. The risk is that this paralysis itself reduces supply – if 72 percent of the market is doing nothing, new rental stock is not being added even as properties gradually leave the sector through sales.
