HeadlinesBriefing favicon HeadlinesBriefing.com

UK landlords flood market as new tenancy laws bite

Financial Times Companies •
×

Savills data shows a flood of buy‑to‑let homes hitting the UK market. In the 12 months to end‑March, 254,000 properties were listed – roughly 700 homes a day. That volume is 9% higher than a year earlier and 28% above the 2024 level, signalling landlords are shedding assets as regulatory pressure mounts. Investors fear the combined cost burden could erode cash flow.

On Friday the Renters Rights Act took effect, ending no‑fault evictions and converting fixed‑term leases into month‑to‑month agreements. Savills’ residential research head Lucian Cook said the reforms coincide with a wave of expiring mortgages that will need refinancing at higher rates, plus new energy‑efficiency standards. Many owners also face compliance deadlines that could require costly upgrades to insulation and heating systems. Together they force small landlords to reassess profitability.

Only 14% of the listed units that sold were snapped up by other landlords; most purchases came from large‑portfolio investors, nudging the sector toward professional ownership. In London, rental listings accounted for 30% of all new instructions, versus 13% elsewhere, amplifying regional imbalances. Tenant groups warn the contraction could push rents upward, stressing affordability for low‑income households.