An estimated 254,000 former buy-to-let properties were listed for sale across Great Britain in the 12 months to March 2025, according to analysis from Savills. This equates to approximately 697 homes per day leaving the rental sector and entering the sales market.
The figure represents a 28% increase compared to March 2024 levels and is 9% higher than the previous 12-month period, indicating an acceleration in landlord exits from the sector.
Regional variations
The trend is most pronounced in London, where former rental properties accounted for 30% of new sales instructions. This compares to just 13% across the rest of Great Britain, highlighting the capital’s particular vulnerability to changing landlord sentiment.
The shift comes as the UK property market faces multiple regulatory pressures, with landlords citing the Renters’ Rights Act as a key factor in reassessment decisions.
A Savills spokesperson said: “For many landlords, the Renters’ Rights Act has become a clear point at which to reassess their investment. This has been compounded by fixed-rate mortgages coming to an end and wider regulatory pressures, including higher minimum energy efficiency standards.”
Market restructuring
The research found that 14% of sold buy-to-let properties were purchased by other landlords, effectively returning to the private rented sector. This suggests the market is experiencing a restructuring rather than a simple contraction.
Savills noted an increase in Section 21 notices being served, often as landlords test achievable rents in the open market before deciding whether to sell. The firm expects this activity to translate into additional sales in coming months.
The spokesperson added: “Looking ahead, refinancing and tenants choosing to move on are likely to become the main sale triggers. But with a significant number of homes returning to the rental market under new ownership, it is not just about shrinking supply, but a broader restructuring of the market towards a smaller more committed pool of professional landlords.”
The findings come as wider housing market indicators show mixed signals, with smaller mortgaged landlords particularly affected by the combination of regulatory changes and financing pressures. The data suggests the buy-to-let sector is undergoing a fundamental shift in composition, with implications for both rental supply and property sales volumes across Great Britain.
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