A lettings expert has warned that already high rents could be set to skyrocket because smaller landlords are starting to leave the sector at scale. Thomas George, director at Mansell McTaggart, an estate and lettings agent covering the whole of Sussex, said the shift will almost certainly result in tenants paying even steeper rents.
Landlords planning to exit
Earlier this month, a poll by Property118 of 2,096 landlords revealed that more than a quarter plan to exit the buy-to-let sector altogether in the next three years. In the next three years, more than two-thirds of landlords (67.7%) expect to sell some properties or exit the sector entirely. The proportion intending to exit completely climbed to 27.1%, while 40.6% plan to sell one or more properties.
Thomas George said: “Worryingly, we’re starting to see a seismic shift in the rental landscape and it’s a shift that will almost certainly result in tenants having to pay even steeper rents. The shift is simple: smaller landlords are selling up at scale.”
Official data shows rent rise
Thomas said that the latest Office for National Statistics rental market data shows the outcome of smaller private landlords selling up. He added: “This week, official data revealed that average monthly private rents in the UK increased by 3.7%, to £1,393, in the 12 months to July 2026 — up from 3.3% in the 12 months to June 2026.”
Thomas said that rents were rising because when landlords sell up, many of those properties are purchased by owner-occupiers, taking them out of the rental market altogether and reducing the volume of stock. He continued: “The number of properties that are available for rent is reducing in number, which pushes prices up on the rental properties that remain. That’s already feeding through into the data.”
Impact on first-time buyers
Thomas added that higher rents are making an already difficult challenge for most first-time buyers even harder. He said: “Of course, more money being spent on rent is making it even harder for tenants to save up for a deposit, especially given the high cost of living that is already eating into people’s disposable incomes. So the first step onto the property ladder for aspiring first-time buyers just got that little bit higher.
“What also worries me is that as smaller landlords exit, bigger corporate landlords may start to take their place. Corporate landlords are standardised and transactional and I fear they won’t hesitate to hike rents. For many tenants, the smaller landlord who knew your name and hadn't raised your rent in three years will soon be gone. They’ll be replaced by a call centre and a rent review clause.”
