Britain’s rental market is braced for turmoil as nearly 100,000 landlords are tipped to sell up before the year is out, sparking fresh fears of soaring rents and shrinking supply.
A survey by lender Black & White Bridging suggests 93,000 buy-to-let landlords with mortgages—around 6% of the total—plan to quit the market in 2025. The number of landlords with buy-to-let loans has already plunged by 65,000 in the past year, with the pace of departures now accelerating.
“This survey points to the loss of more than 150,000 landlords in just two years,” said Damien Druce, chief operating officer at Black & White Bridging. “Most are small-scale owners with one or two properties who don’t want to face the rising costs and red tape.”
Small landlords cashing out
Figures obtained by accountancy firm RSM UK show more landlords are selling up. HMRC data reveals the number of people paying capital gains tax (CGT) on residential property has more than doubled in seven years—clear evidence, experts say, that smaller landlords are offloading their properties.
“The Treasury may be enjoying a short-term tax windfall, but it’s coming at the expense of long-term rental supply,” said RSM’s Chris Etherington.
Taxes, rules and rising costs bite
Landlords have faced a barrage of tax and rule changes in recent years. Mortgage interest tax relief has been stripped back, while stamp duty surcharges on second homes have ramped up purchase costs. Larger portfolio landlords, often operating via companies, have avoided some of the pain.
The looming Renters Reform Bill—with its scrapping of “no-fault” evictions—alongside higher interest rates has added to the pressure.
And landlords fear the worst is yet to come. Reports suggest the government is considering a new Budget raid by slapping National Insurance on rental profits to raise £2 billion.
“This risks accelerating the exodus,” warned Shaun Moore of Quilter. “Fewer landlords mean fewer homes to rent. That imbalance will push rents even higher and make life harder for tenants.”
Mortgage rates dip but repossessions climb
There is some relief for landlords: average fixed-rate buy-to-let deals have fallen to their lowest since 2022, according to Moneyfacts—4.88% for two-year fixes and 5.21% for five-year fixes. Product choice is now at a record high.
“Those refinancing this year will see far cheaper deals than in 2023,” said Moneyfacts’ Rachel Springall.
But the wider picture is grim. Buy-to-let repossessions rose 11% last year, UK Finance said, while the National Residential Landlords Association found more than a quarter of landlords sold at least one property in 2024—just 8% bought.