Nearly six in 10 landlords have no plans to sell their properties in the next year, according to the latest data from Landbay. This follows earlier findings showing 52% of landlords intend to expand their portfolios over the same period.
The number of those planning to expand their portfolios has almost doubled since last year’s Autumn Budget, after the stamp duty hike on second homes went from 3% to 5%.
Stamp duty, regulation, and other elements have put a squeeze on the market. However, the recent data from Landbay suggests landlords may not be making the mass exodus many expected.
“The landlord market is reshaping, not retreating,” said Alex Upton, managing director for specialist mortgages and bridging finance at HTB.
“Smaller landlords are reconsidering their position, with tax changes, compliance costs, and forthcoming legislation like the Renters’ Rights Bill prompting some to sell.
“At the same time, professional landlords are pressing ahead, consolidating their holdings, expanding portfolios, and increasingly targeting refurbishment and mixed-use properties that can deliver resilience and meet future EPC standards.”
For Alex, stability is essential to build confidence. She maintained that the government must resist making short-term changes in the next Budget, and lenders must provide pragmatic solutions that allowed landlords to plan ahead.
“If we get that balance right, the private rented sector will not contract but continue to evolve, with fewer, more professional landlords providing the quality homes that tenants so clearly need.”
Despite Landbay’s data, not all insights are as optimistic. Recent research from lender Black & White Bridging estimated that 93,000 BTL landlords would walk away from the market this year.
Of the intermediaries surveyed by Black & White, there was a forecasted 6% drop in landlords by the end of 2025. It claimed that the number of landlords had already fallen by 65,000, with a 4% drop recorded between 2023 and 2024.
Just 23% of those surveyed by Black & White anticipated a growth in landlord numbers in 2025, while 56% forecasted a decline.
Damien Druce, COO at Black & White Bridging, commented: “The landlord exodus is real. The number of landlords leaving the sector is growing year-on-year.
“It isn’t a trickle. It's a torrent. If this rate of change continues, it will have a significant effect on the rental market.
“The good news is that the landlords who are selling up are amateurs with smaller portfolios. They're the ones being put off by changing regulations. Larger landlords, with a greater understanding of the system, are proving more resilient.”
Martin Sims, distribution director at Molo, said he saw resilience in the market but anticipated that landlords could face major issues in the near future.
“Landlords still face significant pressure — particularly those owning properties without the benefits of SPV ownership.”
Martin suggested that all focus was now on the Budget and how the government would address the public finance gap, with the hope that it does not disproportionately impact those providing rental accommodation in the BTL sector.
He noted more alignment towards larger landlords, as well as a change in the types of property being invested in, which was preventing a wholesale exit of the market. As investor priorities change, lenders need to adapt and offer products for a broader range of property types and investor profiles, he added.
“There is always opportunity where others see risk. So, while many landlords have exited the market — and that is without doubt the case — others are taking advantage of the gaps left and innovating around property type.”
Rob Stanton, sales and distribution director at Landbay, was also optimistic about the landlord market.
“Almost all the landlords we spoke to recently – about 98% of them – say they plan to buy property. More than half don’t intend to sell any. There’s no question confidence is returning to the market.
“Stabilising rental yields are reducing the risk for landlords. Despite regulatory concerns, rising tenant demand — especially in urban areas — has driven healthy rental income growth.
“Recovering property prices and improved mortgage availability, with competitive rates for BTL properties, are also helping to bolster confidence and reassure landlords that the market is viable in the long term.”
Rob highlighted falling interest rates reducing financial pressure allowed landlords to concentrate on product transfers and remortgaging rather than selling. Meanwhile, rising house prices also made selling less attractive and prompted retainment.
However, for Rob, the question of whether or not a landlord exodus was on the cards was not a straightforward one.
“It’s not quite so binary as whether a landlord exodus will or will not happen. To a degree, it already has. We have seen a shift in the landlord demographic.”
Rob pointed to research highlighting the changing age demographic in property investment, with younger people increasingly buying BTL property and entering the market.
“Not wishing to generalise but, by and large, they seem to be more adaptable to regulatory changes and more tech-savvy.
“They are willing to use, for instance, digital platforms for property management, which is helping to prop up margins.
“Their optimism, driven by long-term capital growth expectations, counters the pessimism of some older landlords. That has stabilised the market and reduced overall exit rates.”
While opinions may differ on the state of the landlord market, the BTL industry will look on with bated breath as the Autumn Budget looms over the horizon.
