UK landlords bought 85,000 fewer properties in the past year, new analysis shows, as higher borrowing costs and looming rental reforms cool expansion plans. Just 6% of Britain’s estimated 2.84 million landlords added to their portfolios, down from 9% in early 2024, signalling a sharp slowdown in buy-to-let investment.
Investors wait on the Renters’ Rights Bill
According to Dwelly, which assessed figures from The Mortgage Works and HMRC, the total number of landlord acquisitions fell to around 170,520 in the past 12 months compared with 255,780 the year before. The shift reflects a market in limbo, with many landlords hesitant to commit further capital until the Renters’ Rights Bill is finalised.
“An 85,000 drop in annual landlord purchases is a clear signal that confidence has been dented by regulatory uncertainty, higher borrowing costs and slower house price growth,” said Sam Humphreys, Head of M&A at Dwelly. “But this is not a mass withdrawal from the market, landlords are simply taking stock.”
The bill, expected to overhaul tenancy rules, eviction powers and compliance burdens, has become a decisive factor in investment decisions. Landlords argue that constant policy tinkering has made long-term planning harder, despite strong tenant demand and robust rental yields across many regions.
Regional buy-to-let hotspots show resilience
Regionally, the East of England led activity with 23,360 purchases over the past year, followed by the East Midlands (21,720) and the South East (18,760). The South West (18,300) and North West (18,080) also saw significant deals, while the North East, despite posting the highest proportion of active landlords at 17%, registered 11,390 transactions.
London’s figure stood at 14,010, while Wales saw the weakest landlord activity at just 2,180 purchases. For some investors, however, the slowdown is less about regional prospects and more about waiting for political dust to settle.
“I was looking at adding another flat in Manchester this summer,” said Alan Reeve, a landlord with properties across the North West. “But with Section 21 on the chopping block and more compliance costs coming, I’m holding off. My tenants are fine, my yields are fine—why risk uncertainty until we know what we’re dealing with?”
Landlords weigh long-term returns against short-term politics
Industry groups have warned that reduced investment risks worsening the rental supply crunch. Fewer new buy-to-let purchases could push rents higher, particularly in cities where demand already outstrips stock. The National Residential Landlords Association (NRLA) has repeatedly urged ministers to strike a balance between tenant protections and landlord confidence, warning that one-sided reforms could backfire on renters.
Despite the pause, many see this as a temporary breather rather than a structural retreat. Humphreys at Dwelly expects landlord investment to resume once legislation is clarified: “The fundamentals of the rental sector remain strong, and once the Renters’ Rights Bill is finalised we expect many will return to buying, particularly in those regions where rental properties continue to bring strong returns on investment.”
Editor’s view
The numbers confirm what many landlords have felt all year: regulatory noise and interest rate pressures are making expansion less attractive in the short term. Yet this is not an exodus—it is landlords exercising caution until government settles the rules of the game. The bigger question is whether political short-termism will leave tenants paying the long-term price in the form of even higher rents.
