Fewer landlords are attempting to sell their properties, according to analysis by Hamptons, as failing to find a buyer could risk their property being empty for a year.
Nationally, only 9.2 percent of homes listed for sale in June had previously been advertised for rent within the last five years, a drop from 11.3 percent at the same time last year. This figure is also down from levels seen earlier in the year before the Renters' Rights Act came into force on May 1. In London, the proportion of homes listed for sale that had been previously let within the last five years was 20.3 percent in June, also on a downward trend.
This suggests that while the Renters' Rights Act may have prompted some landlords to sell earlier in the year, it may now be having the opposite effect now that it is fully implemented. As of May 1, 2026, landlords who serve a Ground 1A notice to sell – the new formal route to regain possession of a rental property for sale – face a mandatory 12-month ban on re-letting the property, even if a sale is not completed.
This means a failed sale now carries a significantly higher cost, potentially leaving landlords with an empty property that cannot be re-let for a year in an already cautious sales market.
Selling a property in the current market is also proving more difficult. Three in five homes listed for sale since January have yet to sell, according to property listing site Zoopla. The average time it takes to sell a property is at its highest since 2011, according to estate agent Hamptons. Analysis of homes listed for sale by landlords last year shows that 51 percent failed to sell, rising to 60 percent among flats.
Aneisha Beveridge, head of research at Hamptons, stated that the balance of risk has shifted for landlords. "A tougher sales market and the introduction of a 12-month re-letting ban mean selling has become a more complicated proposition for landlords," Beveridge said. "For many, the prospect of being left with an empty property that can't easily return to the rental market has made holding on to an investment look more attractive."
Beveridge anticipates that the decision to hold onto properties may start to pay off for landlords, as yields have improved over the last couple of years with rents rising faster than house prices. Rental growth is also picking up again, with rents on newly let homes rising at their fastest pace in over a year. Across the entire rental market, including new lets and ongoing tenancies, rents rose by 2.2 percent year-on-year, with the average rent on a newly let home reaching £1,392 per month in June.
The flats market is disproportionately affected by landlord selling. Across the UK, 24.4 percent of flats marketed for sale in June had previously been rented, compared to just 7.8 percent of houses. Both investors and owner-occupiers have become more cautious towards flats amid rising service charges. The average service charge bill for leaseholders ranges from £1,525 a year to £8,680 annually. In June, the average flat took almost a month longer to sell than a house, with flats going under offer after 85 days compared to 59 days for a house.
The number of rental homes has remained broadly flat for the last decade. This is because while landlords have been selling properties, others have been buying, and accidental landlords – those who have held onto a property they previously lived in – have also contributed to the stock. Tax changes from 2016, higher interest rates since 2022, and the implementation of the Renters’ Rights Act in 2026 mean many landlords looking to exit the market have likely already done so. The private rented sector has not grown in line with the wider housing market; while the total number of homes has increased by around 2 million over the last decade, the number of rental homes in England has remained at 4.8 million, with most new stock going into owner occupation.
"While the new rules may have encouraged some landlords to sell, the bigger shift has come from years of tax changes and higher mortgage costs, which have gradually reduced the number of landlords in the market," Beveridge added.