A stark analysis of the market for rental homes on sale paints a bleak picture of the consequences of the Renters Rights Act.
As of May 1 this year, landlords who serve a Ground 1A notice to sell – the new formal route used to regain possession of a rental property in order to sell it – face a mandatory 12-month ban on re-letting the property, even if they are unable to find a buyer.
A study by Hamptons, one of the lettings agency brands owned by Connells Group, says that this means a failed sale now comes with a much higher cost.
And it warns that in an already cautious sales market, landlords risk being left with an empty property that cannot be re-let for a year.
Hamptons’ analysis of homes listed for sale by landlords in 2025 shows that 51% failed to sell, rising to 60% among flats.
Had the new rules been in place last year, an estimated 80,000 to 100,000 unsold rental homes would have been legally barred from returning to the rental market for 12 months, significantly reducing the number of homes available to rent.
The agency has also analysed the number of rental homes currently listed for sale, and says that some 9.2% of homes listed for sale in June had previously been advertised for rent within the last five years.
This is a drop from 11.3% at the same time last year.
Hamptons says: “This suggests that while the RentersmRights Act may have prompted some landlords to sell, the larger wave of exits appears to have been driven by earlier tax changes and higher mortgage rates.”
And it adds that June marked a turning point for rental supply, not because landlord buying has risen, but because landlord sales have fallen back.
Landlords accounted for a relatively muted 10.2% of all purchases in June 2026, while previously rented homes made up 9.2% of homes listed for sale.
This means that, for the first time since 2019, the share of homes bought by landlords exceeded the share of homes sold by them.
The agency admits that, of course, many landlords wanting to quit have already sold, thus leading to the reduced proportion of ex-rental homes now on sale.
And it adds: “A slower sales market is also making landlords more cautious about serving notice to sell.
“With properties taking longer to find a buyer, and some failing to achieve their asking price, landlords face a greater risk of being left with an empty home that cannot be easily returned to the rental market.”
In detail, it says this is particularly acute in the South of England, where higher prices and lower yields continue to weigh on investor appetite.
It is also concentrated among flats, which made up 51% of rental homes listed for sale last year and remain disproportionately exposed to landlord selling.
Across Great Britain, 24.4% of flats marketed for sale in June had previously been rented, compared with just 7.8% of houses. Both investors and owner-occupiers have become more cautious towards flats amid rising service charges.
In June, the typical flat took almost a month longer to sell than a house. The average flat went under offer after 85 days, compared with 59 days for a house.
This article is taken from Landlord Today