Rental supply has fallen sharply as more landlords leave the market, according to findings from LandlordBuyers.
Over 18,000 rental homes were lost between October 2024 and June 2025, pushing rents to record highs across the country.
Research found that 26% of landlords planned to sell in the next year, while just 6% wanted to buy more properties.
For every buy-to-let (BTL) property bought, 5.4 were sold to owner-occupiers.
Around 15.6% of newly listed homes in Q1 2025 were former rentals, up 9% on the previous year.
The average rent across the UK reached £1,342 per month, an increase of 8.9% year-on-year.
Cities in the North and Midlands saw some of the biggest rises.
Rents in Manchester were up 12.3% to £1,351 a month, while Birmingham saw a 10.7% rise to £1,192.
Bristol rents increased by 11.8% to £1,488 and in Leeds, rents grew by 9.6% to £1,121.
Cardiff rose 10.1% to £1,097, Glasgow 8.4% to £1,045, and Belfast 9.8% to £937.
In London, outer boroughs saw an 11.2% rise to £1,921, while inner boroughs went up 7.9% to £2,384.
Rents have increased fastest in urban centres and university towns, where supply has dropped and new landlord investment has slowed.
Jason Harris-Cohen, managing director at Landlord Buyers, said: “With over 18,000 rental properties lost from the market in just nine months, we’re witnessing one of the most significant contractions in the UK’s private rental sector in decades.
“Landlords are being squeezed by rising taxes, tightening legislation, and increasing maintenance costs, many feel they have no choice but to sell.
“At LandlordBuyers, we believe there’s a better way to exit the market.”
Harris-Cohen added: “Our service allows landlords to sell quickly and discreetly without forcing tenants out of their homes, which is more important than ever as the average rent in the UK hits £1,342 per month and demand for affordable housing soars.”
