Britain’s landlords are being squeezed like never before, and many are now reluctantly deciding to sell their properties. A new survey from specialist buy-to-let lender Landbay paints a stark picture of a sector under siege from mounting regulation, heavy taxation, and relentless political interference.
The survey, carried out in May, found that just 58% of landlords are confident they will keep hold of all their properties this year. On the face of it, Landbay’s Rob Stanton calls this “hugely encouraging.” But for those on the ground, it’s a sobering sign that more than four in ten landlords are preparing to scale back—some drastically.
Smaller landlords, those with fewer than four mortgaged properties, are the most determined to stay put (32%). Medium-sized portfolio owners (four to 10 properties) follow close behind at 24%. But these figures are cold comfort against the backdrop of landlords being pushed to the brink.
Among those preparing to sell, 15% said they would dispose of up to 10% of their holdings. A smaller, but still significant, share—nearly one in ten—admitted they may sell as much as half their portfolio. For many, the decision is not about profit-taking but survival.
The biggest pressure point is regulation, with 35% of landlords citing the forthcoming Renters’ Rights Bill as their main reason for selling. Far from providing reassurance, the legislation has left landlords fearing endless red tape, higher compliance costs, and fewer rights to manage their own investments.
Close behind is taxation, flagged by 31% of respondents. Although slightly down from last year’s 51.4%, the message is clear: the financial burden is unbearable. With mortgage costs soaring and fewer tax reliefs available, many landlords say their once-viable businesses are now teetering on the edge. And the threat of the Treasury imposing National Insurance contributions on rental income—leaked ahead of the Autumn Budget—has only deepened fears.
Beyond these headline issues, landlords also face ever-rising maintenance costs, new energy efficiency requirements, and the growing challenge of meeting tenant expectations. While the government insists landlords must “do more,” many feel they are being punished for providing housing that the state itself has failed to deliver.
“We’ve become the easy target,” one landlord told us. “Every year there’s another tax, another rule, another hoop to jump through. At some point, you have to ask: why keep doing this? If more of us sell, tenants will be the ones who suffer.”
Stanton stresses that lenders like Landbay want to support landlords through this difficult period, offering competitive mortgage rates and flexible product transfers. But landlords themselves say the bigger issue lies with government policy—policies that are driving good landlords out of the market and shrinking the supply of rental homes.
What this survey makes clear is that Britain’s private rented sector is being hollowed out. As landlords scale back or exit altogether, tenants are left with fewer choices, higher rents, and a market under even greater strain.
The truth is simple: landlords are not the problem—they are part of the solution. Unless ministers start listening, Britain risks pushing away the very people who provide the homes millions depend on.