Almost 850,000 homes have exited the UK’s private rented sector over the past decade, although rental supply has climbed to a seven-year high as build-to-rent continues to reshape the market, according to TwentyEA.
The property data firm’s latest Property & Homemover Report found that around 18.6% of private rented sector stockhas been sold and not returned to the rental market over the last 10 years, equating to almost 850,000 homes.
While TwentyEA said the trend cannot be attributed solely to the Renters’ Rights Act, it noted that landlord disposals accelerated as the legislation approached implementation.
The highest volume of former rental homes left the sector during 2025, when almost 181,000 properties were sold. Most provisions of the Renters’ Rights Act came into force on 1 May 2026.
HIGH SUPPLY
However, despite the continued reduction in traditional landlord-owned stock, overall rental supply has reached its highest level for seven years.
According to TwentyEA, available rental stock is more than 17% higher than during 2025, driven in part by continued growth in the build-to-rent sector. Listings of purpose-built rental homes increased by 22% year-on-year during the second quarter of 2026, helping offset the reduction in homes owned by individual landlords.
Nick Huntley (main picture, inset), Director at TwentyEA, says: “While it’s encouraging to see rental supply reach a seven-year high, that doesn’t tell the whole story. Many letting agents are still feeling the effects of landlords leaving the traditional PRS, reducing the stock they have available to market.
“The growth in purpose-built rental housing is helping to bring new homes into the sector, which is positive news for renters, but it complements rather than replaces the role of private landlords. The healthiest rental market is one where both parts of the sector are thriving and overall supply continues to grow.”
RENTERS’ RIGHTS ACT
The report also examined rental pricing following the introduction of the Renters’ Rights Act, finding that regional trends have diverged considerably.
Instruction price inflation was strongest across Wales and the Midlands, while the East of England recorded the largest annual price fall at 7.7%, followed by Yorkshire and the Humber, where asking rents fell by 4%.
TwentyEA says the legislation was always expected to produce mixed pricing outcomes, with tighter controls on rent increases and the ban on rental bidding potentially easing rental inflation, while higher compliance costs could encourage some landlords to raise initial asking rents.
AFFORDABILITY PRESSURES
Despite ongoing affordability pressures, demand remains robust across most of the country. Supply of newly listed rental properties increased across every UK region, while the volume of homes available to rent rose in 10 of the UK’s 12 regions, suggesting the market is gradually becoming more balanced.
Huntley adds: “The rental market is still very busy, but it’s becoming better balanced. Demand continues to grow in almost every region, yet supply is increasing even faster across most of the country. If that trend continues, it should gradually reduce the intense competition we’ve seen over the last few years and create a more stable environment for both renters and letting agents.”
