Landlord exits accelerated in 2025
The Property and Homemover Report for Q2 2026, produced by TwentyCi and TwentyEA, analysed around 4.5 million UK properties listed to rent since 1 January 2016.
The largest number of former rental properties was sold during 2025, with exits continuing to rise in 2026, coinciding with preparations for the Renters’ Rights Act 2025. It’s important to note that the figures cover the whole of the UK, while the Act applies only in England. Landlord decisions may also reflect a wider combination of tax, regulatory, financial, and personal factors.
Nevertheless, the scale of the change presents a significant challenge. When homes leave the private rented sector, tenants have fewer options: particularly if replacement supply is concentrated in different locations, property types, or price ranges.
Rental supply reaches a seven-year high
Despite the long-term reduction in traditional privately rented homes, the number of properties coming onto the rental market has risen sharply during 2026.
Across the UK, new rental supply during the year to date was 17.4% higher than in 2025, an increase of 108,300 properties and the highest level recorded for seven years. Supply grew by double-digit percentages across every rent band, with the strongest rises among homes marketed for £800–£1,500 per month.
In Q2 alone, new instructions increased by 16.7% compared with the same quarter in 2025. Lets agreed rose by 2.6%, while completed lets increased by 0.9%.
The fact that new instructions are growing more quickly than lets agreed has started to improve choice. Available rental stock in June 2026 was 2.9% higher than a year earlier, bringing an end to five consecutive years of decline.
However, the report cautions that the improvement is modest and that overall availability remains below levels seen in earlier years.
Build to Rent is reshaping supply
Advertising for purpose-built rental properties, typically owned by institutions, investors, or large landlords rather than individual buy-to-let investors, was 22% higher in Q2 2026 than a year earlier. This changing balance matters because an increase in the headline number of listings does not necessarily replace the affordability, location, or property types lost when smaller landlords sell.
Build to Rent can add professionally managed, modern homes to the sector, often with facilities such as communal lounges, gyms, co-working spaces, and concierge services, which attract a premium over the wider rental market in most regions. The premium ranged from 8.5% in the South East to 47.6% in Wales. The North West was the only region where Build to Rent properties were cheaper on average than other rental stock.
Regional differences remain significant
Wales recorded particularly strong growth as year-to-date rental supply rose by 33%, while lets agreed increased by 13.8%. Available stock was 20.4% higher than a year earlier.
By contrast, Northern Ireland saw available stock fall by 54.1%. Inner London and Yorkshire also recorded reductions in availability.
Across Q2, lets agreed increased in most regions, led by Wales led with growth of 10.9%, followed by Scotland at 6.9%. Northern Ireland recorded a fall of 26.5%, while Inner London was down 3.5%.
These variations underline the importance of looking beyond national averages. Local agents remain well placed to explain how changes in supply, demand, and affordability are affecting individual markets.
Affordability remains under pressure
Rental prices have remained broadly static for three years, but affordability continues to be a problem. Rents have generally risen across the Midlands and the North while falling in London and southern England.
Demand also remains strong. Lets agreed during the year to date were 4.1% higher than in 2025 and reached their highest level for a decade.
For letting agents, the figures point to a market undergoing structural change rather than a straightforward recovery in supply. More homes are being advertised, but a substantial proportion of traditional rental stock has been permanently lost, while institutional Build to Rent providers are playing a growing role.
Housing Insight Reports
Our Housing Insight Report takes a monthly look at the trends affecting the UK housing market. We gather the statistics by surveying estate and letting agents who are members of NAEA Propertymark and ARLA Propertymark.
