The number of properties being listed for sale by landlords is rising sharply, with new data from TwentyEA revealing that 15.6% of all new instructions in Q1 2025 were previously rented homes. This marks a substantial increase from 9.8% in Q1 2024.
In total, there were 451,154 new property instructions in Q1 2025, with 70,542 of these having been part of the private rental sector within the past three years. TwentyEA, part of the TwentyCi group, notes that this reflects a clear trend of landlords exiting the market.
According to its latest Property & Homemover Report, only 2.9% of sold properties in Q4 2024 were subsequently let again in Q1 2025. That equates to 3,634 homes re-entering the rental market, implying the vast majority of rental stock sold is not being replaced by new landlords.
With around half of all new instructions typically going on to complete a sale, this trend suggests approximately 18,000 properties have exited or are set to exit the private rented sector since Q4 2024.
At the same time, the supply of new ‘to let’ listings declined 1% compared with Q1 2024 and is now 22% lower than in the same period of 2019. Only 284,000 properties are currently available for rent across the UK – 18% less than a year ago and 23% down on pre-pandemic levels.
Rents continue to rise as supply tightens. Forty-six percent of available rental properties are listed above £1,500 per month, and over 15% are marketed at more than £3,000. The average monthly let agreed price now stands at £1,767, making affordability a growing issue for tenants.
Katy Billany, executive director at TwentyEA, said: “The rental market remains under significant strain, with tenants across the country facing a chronic shortage of homes.
“Our analysis reveals that a growing number of landlords are selling up to exit the sector and there’s a common misconception that other landlords will buy their properties and reintroduce them to the lettings market. By and large though, this is not what we’re seeing.
“In Q4 2024, approximately 40,000 former rental properties were listed for sale while only 3,600 were let in Q1 25 suggesting they had been purchased by other landlords. If 50-55% of the previous rental homes listed for sale go on to sell, it suggests that around 18,000 homes will exit the private rental sector or have already done so.
“The rental market is experiencing an accelerated adjustment phase as supply constraints intensify and rental costs continue their upward trajectory ahead of the Renters’ Rights Bill implementation. Notably, market indicators have been signalling these shifts prior to the formal introduction of the legislation, reflecting broader underlying dynamics. The private rental sector demonstrates significant volatility, a condition that analysis suggests will persist throughout the near-term planning horizon.”
