A recent report by global real estate services provider highlights a significant shift with smaller, individual landlords exiting the market, making way for the pricier Build-to-Rent (BTR) sector to expand its footprint.
Its findings are based on a combination of property portal listings and transaction data from HM Land Registry, offering a detailed insight into the shifting dynamics of rental housing across the country.
New data from reveals a sharp shift in property transactions within England’s rental market. In 2024, for every home purchased by a landlord from an owner-occupier more than five were sold by landlords to individuals looking to buy their own home—a striking 5.4:1 ratio.
This marks a dramatic acceleration compared to 2021, when the balance was nearly even, with a ratio close to 1:1.
The data also reveals between April 2021 to October 2024, 290,000 rental properties were sold out of the rental market accounting for 6% of the private rented sector in England and Wales.
The company says whilst new investment in the Build-to-Rent market has gone some way to add new supply to the private rented sector, it is not happening fast enough to replace lost supply and meet demand.
The company also cites figures from an Industry Association that highlight an increasingly one-sided trend in property transactions.
In 2024, nearly one in five landlords (19%) sold properties, while just 8% made new purchases—underscoring a sharp net reduction in rental stock
Looking ahead, the divide appears even starker. According to the NRLA, 41% of landlords plan to sell within the next year, with only 6% indicating an intention to buy which is suggesting further contraction in the sector is likely.
The real estate provider has highlighted a series of tax changes that are making buy-to-let investments increasingly unattractive, prompting more landlords to offload their properties. Among the most impactful has been the phased removal of mortgage interest tax relief, introduced through Section 24 of the Finance Act 2015 under then-Chancellor George Osborne. This reform replaced full interest offsetting with a basic 20% tax credit, significantly reducing profit margins for many landlords.
Further tax tightening came in last year’s Autumn Budget, when Chancellor Rachel Reeves increased the stamp duty surcharge for additional property purchases from 3% to 5%, adding another financial hurdle for prospective and existing landlords.
Savills cautions that this steady stream of landlord exits could carry serious repercussions for the wider housing market, potentially exacerbating rental shortages and affordability pressures.
It also cautions that this steady stream of landlord exits could carry serious repercussions for the wider housing market, potentially exacerbating rental shortages and affordability pressures.
A spokesman for the company says: “Loss of rental supply has far-reaching consequences for the housing market. Demand for rented homes is high because the private rented sector provides homes for a very broad range of people.
“First and foremost, the private rented sector is the tenure of choice for young people. This includes those studying at University, in the early stages of their career or those who need to move often for work. But the private rented sector also represents the ‘squeezed middle’ of housing tenures: making up for the lack of delivery of Affordable homes and meeting housing need from those priced out of home ownership.
“With a lack of supply and elevated demand, the inevitable consequence is high rents that are growing strongly.”