More than a quarter of landlords plan to exit the buy-to-let sector altogether in the next three years, according to a survey of 2,096 landlords by Property118. The survey, published on 16 August 2026, attributes this trend to punitive taxation and the Renters' Rights Act.
Survey reveals shrinking portfolios
The Property118 survey found that over the past two years, just over half of landlords (53.8%) report their portfolio has stayed roughly the same size, while four in 10 have been shrinking their portfolio through sales. Only 6% of landlords have been growing their portfolios.
Looking ahead, more than two-thirds of landlords (67.7%) expect to sell some properties or exit the sector entirely in the next three years, against fewer than one in 10 (9.5%) planning to buy. The proportion intending to exit completely has climbed to 27.1%, while 40.6% plan to sell one or more properties. 22.8% expect their portfolio to be the same in three years' time.
Industry reaction and concerns
The news comes as brokers say a growing number of landlords are considering diversifying into semi-commercial property. Mark Alexander, Founder at Property118.com, a community and news hub for landlords, said: "The worrying number isn’t simply that 27% of landlords are considering leaving altogether. It’s that for every landlord planning to buy, more than seven are planning to sell properties or exit.
"Not every intention will become a sale, of course, but that imbalance should concern policymakers. If rental supply continues to contract while demand remains strong, tenants will ultimately feel it through less choice, greater competition for homes and further upward pressure on rents."
Impact on tenants and market structure
Thomas George, Director at Mansell McTaggart, added: "The small landlord is leaving, the corporate giant is moving in and nobody's talking about it. While 40% of landlords shrink their portfolios and 27% plan to exit entirely, a handful of well-capitalised companies are quietly hoovering up discounted stock at scale.
"This isn't coincidence. This is strategy. We are sleepwalking into the monopolisation of the British rental market. Corporate landlords with a factory approach who are soulless, standardised and transactional. The personal landlord who knew your name and hadn't raised your rent in three years? Gone. Replaced by a call centre and a rent review clause.
"Rental income, one of the last accessible wealth-building tools for ordinary people, is being consolidated upward into institutional hands. The Government set out to protect tenants. They may have handed their homes to the very people tenants should fear most."
