Landlord buying activity has slowed sharply over the past 12 months, with an estimated 170,520 landlords purchasing a property compared with 255,780 a year earlier – a fall of 85,260 transactions, according to analysis from Dwelly.
The research applied the latest data from The Mortgage Works on landlord purchases to HMRC figures on total landlord numbers.
It showed that just 6% of the UK’s 2.84 million landlords bought a property in the past year, down from 9% in the first quarter of 2024.
Regionally, the East of England saw the highest number of landlord purchases, with 23,360 transactions.
The East Midlands followed with 21,720, while the South East recorded 18,760. The South West saw 18,300 acquisitions, closely followed by the North West on 18,080.
The West Midlands recorded 16,160 landlord purchases, London 14,010, the North East 11,390 and Yorkshire and the Humber 10,860.
Wales saw the lowest level of activity with 2,180 purchases.
While the North East remained the most active market proportionally, with 17% of its 67,000 landlords buying in the past year, this was down from 22% the previous year.
Dwelly said the figures reflect the impact of uncertainty surrounding the Renters’ Rights Bill, which is expected to bring changes to tenancy rules, eviction processes and compliance requirements.
The firm suggested many landlords are delaying further investment until the legislation is finalised, but will return to buying in areas with strong yields and demand once the market has adjusted.
Sam Humphreys, head of M&A at Dwelly, said: “An 85,000 drop in annual landlord purchases is a clear signal that confidence has been dented by regulatory uncertainty, higher borrowing costs and slower house price growth.
“But this is not a mass withdrawal from the market, landlords are simply taking stock and who can blame them with the Renters’ Rights Bill set to bring substantial changes to the sector.
“Despite this uncertainty, the fundamentals of the rental sector remain strong, and once the Renters’ Rights Bill is finalised we expect many will return to buying, particularly in those regions where rental properties continue to bring strong returns on investment.”
