A record number of landlords are selling off rental properties, further squeezing the supply of homes and driving up rents, new research from the National Residential Landlords Association (NRLA) has revealed.

Data from the final quarter of 2024 shows that 26% of landlords sold at least some of their rental properties last year, surpassing the previous record high of 25% recorded in the third quarter. Meanwhile, investment in new rental homes remains subdued, with only 8% of landlords purchasing additional properties.

This growing gap between landlords exiting the market and those investing in new stock is exacerbating the country’s housing supply crisis, making it harder for tenants to find affordable homes in their desired locations. Rising demand is also intensifying the issue. Property platform Zoopla reports that inquiries for rental homes are 31% higher than pre-pandemic levels.

At the same time, a study by Oxford Economics highlights the growing affordability gap for renters, revealing that only one in eight tenants can afford to buy a home in their current area.

The trend of landlords leaving the sector is expected to continue. Figures from the English Private Landlord Survey show that 31% of landlords are currently planning to sell rental properties—an increase from 22% four years ago.

The NRLA warns that the situation is already having dire consequences. Analysis from late 2024 found that the number of households in the private rented sector at risk of homelessness due to landlords selling up had risen by a third since the end of 2023.

The latest findings are set to bolster calls for government action. The NRLA is using the data to push for reforms that will encourage landlords to remain in the sector, ensuring a more stable and sustainable rental market for tenants.