Landlords brought fewer former rental homes to the sales market in the first quarter, with new data suggesting the sell-off wave eased sharply ahead of the Renters’ Rights Act switch on 1 May.
TwentyCi records a sharp drop in former rental homes for sale
According to TwentyCi’s Property & Homemover Q1 2026 report, the share of homes listed for sale that had been rented within the previous three years fell from 22.5 percent in Q1 2025 to 12.4 percent in Q1 2026. That is a 45 percent year-on-year drop.
For landlords, the immediate point is that exit activity has not disappeared, but it has cooled. That matters because the private rented sector has spent the past year braced for a larger rush to the door as compliance costs rose and the Renters’ Rights Act approached.
London saw the biggest retreat. The capital recorded a 51 percent year-on-year fall in landlords listing former rental homes for sale. Outside London, the drop was 41 percent. Inner London remained the hottest exit market, but even there the pace slowed materially.
Supply pressures have not gone away
The slower rate of selling does not mean rental supply is back to normal. TwentyCi still said regulation, tax changes and higher operating costs have reduced private rented stock at the same time as affordability and availability remain major housing problems.
This follows Landlord Knowledge’s report on NRLA data showing 24 percent of landlords planned to quit over the Renters’ Rights Act. The latest figures suggest some owners have delayed a sale rather than abandoned the idea completely.
There is another reason for caution. TwentyCi found that only 11 percent of former rental homes sold in London during Q2 and Q3 2025 had returned to the lettings market by the end of Q1 2026. Outside London, the figure was just 6 percent. Once stock leaves the sector, it is still not coming back in large numbers.
Why landlords may be pausing rather than staying
For property investors, the change looks more like a pause than a full recovery in confidence. Some landlords may have chosen to wait until the new rules bed in before making a disposal decision. Others may simply be holding assets that still produce acceptable income in a weaker sales market.
That reading fits with wider market conditions. Landlords facing slower rent growth and tighter tax treatment do not have many easy replacement options for income. Selling only makes sense if pricing, financing and reinvestment plans line up. In that sense, a lower sell-off rate is not automatically bullish for the sector – it may just mean owners are sitting tight.
Combined with Landlord Knowledge’s recent coverage of slowing rent growth, the picture is mixed. Fewer landlords are exiting right now, but many are also operating with less pricing power than they had a year ago.
What this means for landlords
- If you’re weighing up a sale: weaker exit volumes do not mean demand is guaranteed – local pricing and time-to-sell still matter.
- If you’re holding stock: reduced selling pressure could help steady rental supply, but replacement stock remains thin once homes leave the sector.
- Watch for: whether post-1 May compliance costs trigger another rise in disposals later in the summer.
- Bottom line: the exodus story has cooled, but the sector has not regained clear confidence.
Editor’s view
The headline looks reassuring, but landlords should not read too much into it. A slower sell-off rate is better than a rush for the exits, yet it is not the same thing as renewed faith in the market.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 27 April 2026
Sources: TwentyCi Property & Homemover Q1 2026 report
Related reading: NRLA says 24% of landlords plan to quit over Renters’ Rights Act
