Nearly 7 in 10 UK landlords are planning to sell at least one rental property in the next year, as fresh data reveals growing discontent over rising costs, regulatory burdens, and declining profitability across the sector.
According to new research, 69% of landlords expect to offload properties over the next 12 months, with many citing the Renters’ Rights Bill, tax rule changes, and maintenance costs as reasons it’s becoming increasingly difficult to stay in the market.
Regulation, tax, and red tape
The most pressing concern heading into 2025? Legislation. A significant 43% of landlords said that “new and changing regulations” were their top financial worry, outpacing even the rising cost of property maintenance and taxes.
This includes the forthcoming Making Tax Digital (MTD) changes, due in April 2026, which will require some landlords to submit quarterly digital tax updates. Though designed to streamline HMRC’s reporting, many landlords see it as yet another layer of complexity added to an already cumbersome system.
Mike Parkes, Technical Director at GoSimpleTax, cautioned landlords not to panic but to act early: “Some mandatory changes, such as Making Tax Digital, don’t have to be a burden. With around ten months to go, preparing for it early by getting comfortable with digital reporting ahead of time will help landlords to reduce stress and stay compliant.”
But regulation isn’t the only concern. A further 24% of landlords cited maintenance costs as a growing strain, followed by 13% worried about increased taxation and 12% concerned about rising mortgage interest rates – an issue exacerbated by the Bank of England’s rate hikes throughout 2023 and 2024.
A confidence crisis
When asked directly about their outlook, a worrying 31% of landlords admitted they were either “very unconfident” or “somewhat unconfident” about the long-term viability of being a landlord. Only 10% said they were ‘very confident’ about the future of their rental business.
One landlord based in Sheffield told us: “It’s becoming no longer financially viable to continue. The costs keep rising, and the rules keep changing—it’s hard to plan for anything.”
The research showed that profitability is becoming more unpredictable, too. While 32% of landlords reported an increase in rental profits over the last year, an equal 34% experienced a decrease, with another third saying their profits had remained unchanged. The lack of a clear upward trend is causing many to reassess their portfolios—and fast.
Expansion stalls
Only a small fraction—just 7%—of landlords said they were considering purchasing additional properties over the next 12 months. That suggests expansion is firmly off the table for most investors, especially those already feeling squeezed by tighter lending criteria and the uncertainty surrounding future policy shifts.
Parkes believes this marks a crucial inflection point for the sector: “These findings show a clear tipping point for landlords as confidence in profitability drops but costs keep rising. Many landlords are scaling back or leaving the market entirely.”
With just months to prepare for changes like MTD and potential fallout from the Renters’ Rights Bill, proactive portfolio management has never been more critical. Parkes added: “It should be a key consideration for any property professionals thinking about their next steps.”
Landlords are clearly not walking away on a whim. They are weighing years of financial modelling, compliance hurdles, and operational headaches. Many are simply choosing to protect what’s left of their margins by trimming portfolios or exiting altogether.
