Landlords Corner: Are Landlords Leaving the Market — and Why Acting Thoughtfully Matters
New research from specialist lender Pepper Money suggests that around 220,000 privately rented homes will be sold out of the rental sector by the end of 2026. That's a significant number, and if you're a landlord weighing your options, you're far from alone in doing so. Understanding what's driving this trend, and what it means for those who stay.
Why landlords are selling
The Renters' Rights Act, coming into force on 1 May 2026, is the single biggest legislative trigger identified in the research. Changes to tenancy agreements, notice procedures and property management obligations are prompting many landlords — particularly smaller ones — to reconsider whether their portfolio still makes sense.
Landlords owning a single property are twice as likely to be planning an exit compared to those with two or more homes, suggesting it's the accidental and part-time landlords feeling the pressure most acutely.
The legislation sits on top of a longer run of regulatory and fiscal changes — tax relief restrictions, increased compliance requirements, EPC obligations — that have cumulatively squeezed the economics of buy-to-let over recent years. For some landlords, the Renters' Rights Act is the final straw. For others, it's prompted a useful audit of whether their approach to letting is still fit for purpose.
What this means for London
London actually has one of the lower rates of landlord exits in the country, with around 6% of private landlords in the capital planning to sell their rental properties in 2026 — compared to 21% in the North East, for instance.
That said, London's sheer volume of rental stock means 6% still translates to a substantial number of homes leaving the market in absolute terms. With average advertised rents in the capital currently running at approximately £2,716 per month, even a modest reduction in available properties is unlikely to ease the pressure on tenants competing for homes.
For landlords who do remain in the market, well-managed, well-maintained properties in areas with strong demand — and Leytonstone sits firmly in that category — are likely to be increasingly well-placed.
Before you decide, get the full picture
If you're considering selling, that may well be the right decision for your circumstances. But it's worth being clear-eyed about the timing and the process. Selling a tenanted property has its own considerations — vacant possession, notice procedures, buyer pools — and getting those details right matters.
If you're considering staying, the question is whether your current setup — your tenancy agreements, your rent review process, your compliance paperwork — is ready for the post-May landscape. For many landlords managing things informally, the honest answer is that it probably needs a review.
Each year a percentage of our landlord clients sell up, it’s always been like this, whether it be through necessity or the execution of a planned exit strategy, and so far, those numbers have not increased beyond the norm. That may of course change if landlords feel negatively affected once the Renters Rights Act has been in place for a while. According to an article in The Negotiator, The Guardian reports that the Chancellor is considering a freeze on rents within the private sector for a limited period as higher prices caused by the Iran war continue to put household budgets under significant pressure, although restricting rents in England would require parliamentary approval.
Staying ahead in the Leytonstone rental market
If you are looking for guidance on the Leytonstone rental market, or you just want a helping hand in complying with rental market regulations, we are always here to assist you.
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