The share of homes listed for sale that were previously rented dropped to 9.2% nationally in June in the aftermath of the Renters’ Rights Act, Hamptons data shows.
The latest Hamptons Monthly Lettings Index shows the share of landlord sales was down 11.3% annually in June and below the 2021-2022 peak.
June also marked the first time since 2019 that landlord purchases exceeded landlord sales, though a stark North/South investment divide remains.
Hamptons suggests the change is due to new rules under the Renters’ Rights Act.
POSSESSION GROUND PROBLEMS
As of 1 May 2026, landlords who serve a Ground 1A notice to sell – the new formal route used to regain possession of a rental property in order to sell it – face a mandatory 12-month ban on re-letting the property, even if they are unable to find a buyer.
This means a failed sale now comes with a much higher cost, especially in an already cautious sales market.
Hamptons’ analysis of homes listed for sale by landlords in 2025 shows that 51% failed to sell, rising to 60% among flats. Had the new rules been in place last year, an estimated 80,000 to 100,000 unsold rental homes would have been legally barred from returning to the rental market for 12 months, reducing the number of homes available to rent.
The data showed that newly agreed rents rose by 1.6% over the past year across Great Britain, the highest pace in 13 months.
For existing tenants, the average rent increase where one occurred stands at 5.4%.
REGIONAL BREAKDOWN
While every region has seen the share of homes listed for sale by landlords fall, landlord exits remain most concentrated in London and the South of England, Hamptons said.
Higher property prices, lower yields and higher mortgage costs have put the greatest pressure on investor returns in these markets.
In London, one in five homes listed for sale in June had previously been let within the last five years, at 20.3%. This was more than double the share recorded in the South East, where 9.5% of homes listed for sale had previously been rented.
The biggest year-on-year falls in landlord sales have been in Northern markets, where stronger yields mean buy-to-let returns remain more resilient.
DIFFERENT PICTURE
Commenting on the data, Aneisha Beveridge, head of research at Hamptons, says: “The Renters’ Rights Act has been a long time coming, and most landlords who wanted to leave the sector because of it have probably already done so. While the new rules may have encouraged some landlords to sell, the bigger shift has come from years of tax changes and higher mortgage costs, which have gradually reduced the number of landlords in the market.
“What’s changed more recently is the balance of risk. A tougher sales market and the introduction of a 12-month re-letting ban mean selling has become a more complicated proposition for landlords. For many, the prospect of being left with an empty property that can’t easily return to the rental market has made holding on to an investment look more attractive.
“For those landlords who have chosen to sit tight, there are signs that their decision may start to pay off. Yields have improved over the last couple of years as rents have risen faster than house prices, giving investors more headroom to absorb higher borrowing costs. At the same time, rental growth is picking up again, with rents on newly let homes rising at their fastest pace in more than a year. While challenges undoubtedly remain, conditions for landlords arguably look better than they did 12 months ago.”
