Thousands of tenants are losing their homes as landlords continue to sell up, new government data has confirmed — fuelling warnings from landlord groups that tax hikes in next month’s Budget could worsen the crisis in rental supply.
Between April and June 2025, 6,700 households in England sought council help to prevent homelessness after their landlord sold the property. That’s three times higher than the next most common cause of tenancy loss, underlining how landlord exits are reshaping the rental market.
UK rent growth threatened by shrinking landlord base
The figures, published by the Department for Levelling Up, Housing and Communities (DLUHC), highlight how fragile the rental sector has become under the weight of higher mortgage costs, regulatory pressure, and limited tax relief.
Landlord sales now account for the single biggest trigger of homelessness in England — far outpacing rent arrears or family breakdowns. According to the National Residential Landlords Association (NRLA), this data should be a wake-up call for ministers ahead of the 26 November Budget.
Ben Beadle, chief executive of the NRLA, warned: “Every landlord who decides to sell a property leaves renters facing uncertainty about where they will next call home. Renters need responsible landlords to stay in the market for the long term, providing the decent quality homes that the vast majority already do.”
The NRLA is urging the Treasury to avoid further tax increases on rental income or capital gains, arguing that discouraging investment in private rental housing will “exacerbate the housing crisis for millions of renters across the country.”
Fears grow ahead of November Budget
Industry analysts say the data is no surprise given the financial squeeze on landlords. Average buy-to-let mortgage rates have more than doubled since 2021, while property maintenance and insurance costs have soared.
According to UK Finance, around 37% of landlords with fixed-rate mortgages are due to refinance before the end of 2025 — exposing them to significantly higher repayments. For smaller landlords, many of whom own just one or two properties, selling up is often the only viable option.
A letting agent in Manchester told Landlord Knowledge that some investors are “exhausted by constant policy changes” and feel “demonised by government rhetoric.” He added: “These aren’t big corporate landlords. Most are individuals who just can’t make the numbers work anymore.”
With the Chancellor expected to outline potential tax reforms later this month, landlord groups warn that any move to increase capital gains tax or restrict mortgage interest relief further could push even more landlords out of the sector.
Rental supply crunch deepens across regions
The impact is already being felt in rental markets nationwide. In Bristol, average monthly rents have jumped 9.2% year-on-year, while Manchester and Leeds have seen increases of 8% and 7.6% respectively, according to ONS data released in September.
With fewer landlords willing to invest, the supply-demand imbalance continues to worsen — leaving tenants competing fiercely for a shrinking pool of homes.
Housing campaigners often frame rising rents as landlord greed, but the figures show a more complex reality: landlords are selling because policy and financial pressures have made renting out property increasingly unviable.
Editor’s view
Landlords are once again being painted as villains, yet the data tells a different story: without them, the private rented sector simply collapses. If the government wants to reduce homelessness, it must stabilise — not punish — the small investors who provide the bulk of rental housing. The next Budget will test whether ministers have truly grasped that reality.
Author: Editorial team — UK landlord & buy-to-let news, policy, and finance.
Published: 20 October 2025
Sources: DLUHC quarterly homelessness statistics; NRLA statement; ONS rental data (September 2025); UK Finance mortgage market report.
Related reading: Landlords leaving rental market linked to rising homelessness, warns council
