Far fewer landlords are buying properties compared with a year ago, as concerns grow over upcoming changes to the rental sector.
New analysis by lettings experts Dwelly shows that around 170,000 landlords purchased a property in the past 12 months — down from 256,000 a year earlier. The drop of more than 85,000 transactions marks one of the steepest slowdowns in recent years.
The figures suggest just 6% of the UK’s 2.84 million landlords have added to their portfolios in the last year, compared with 9% at the start of 2024.
The East of England saw the highest number of purchases (23,360), followed by the East Midlands (21,720) and the South East (18,760). The North East remained the most active market proportionally, with 17% of landlords making a purchase, although that was still lower than the 22% recorded last year.
Experts say much of the slowdown is linked to uncertainty over the government’s planned Renters’ Rights Bill. The legislation could make major changes to tenancy agreements, eviction rules and compliance checks, leading many landlords to hold off on new investments.
“Confidence has been dented by uncertainty, higher borrowing costs and slower house price growth,” said Sam Humphreys of Dwelly. “But this isn’t landlords leaving the market altogether — they’re waiting to see what happens. Once the new rules are clear, we expect many to start buying again, especially in areas where rental demand is high.”