Over a third of landlords (37%) are planning to sell a property in the next 12 months, according to new research from Pegasus Insight.
The firm’s Landlord Trend Research Report Q1 revealed a large cohort of “disillusioned” landlords, with government reform and changes in tax treatment the source of this.
This research, carried out in March 2025, is almost double the 20% of landlords who felt the same way a year earlier.
Pegasus surveyed 882 landlords which found ambitions to buy properties had conversely dropped over this period.
In March 2025 only 6% of landlords were planning to buy a property in the next 12 months while 18% responded as such a year before.
The research also revealed recent selling activity as heightened in the PRS.
In the 12 months before March 2025, 22% of landlords had sold a property compared to only 6% who had bought one.
Despite both this selling activity and greater ambition to sell in future, respondents told Pegasus about strong fundamentals in the PRS.
Over a third of landlords (37%) reported current demand as ‘very strong’ with 36% describing this as ‘quite strong’.
Only 3% saw tenant demand in their area as ‘weak’.
The average rental yield remained high and unchanged at 6.3%, just 0.2% below the 10-year high recorded in the third quarter of 2024.
Mark Long, director and founder of Pegasus Insight, warned the trend of greater selling from landlords could further exacerbate housing shortages and remove more stock from the PRS.
“The government must wake up to the dangers of a shrinking PRS and change its approach to the landlords who provide homes for 19% of the UK’s population,” added Mark.
“Now is the time for policymakers to consult with the industry on ways to support landlords and encourage further investment in the PRS, before it is too late.”
