The number of landlords exiting the market or downsizing their portfolios has risen significantly according to analysis by TwentyEA.

Figures indicate that the number of properties currently listed for sale that were previously listed for rent in the past three years has increased substantially.

In June 2024, 18.4% of all properties listed for sale had also been listed for rent within the prior three years. This accounted for just over 28,000 properties, representing a 100.6% increase from June 2023 and a 34.6% increase from June 2019.

Additionally, this was 27.4% higher than in May 2024, the month Rishi Sunak called the General Election for July 4th.

Katy Billany, executive director of TwentyEA, stated: “There’s no doubt our data shows a significant uplift in the number of landlords selling up, either reducing their portfolio size or possibly exiting the sector completely.

“There’s currently a lot of uncertainty in the buy-to-let market around what the change in government means for landlords but they have also been hit by steep interest rate rises and rising costs generally, so it’s likely there are several factors at play here.”

The report also shows that 2024 is generally returning to normalcy, with the supply of new instructions up by 8.6% for the quarter and sales agreed increasing by 15.1% compared to Q2 2023.

Both metrics have now exceeded levels seen before the Truss/Kwarteng period and prior to mortgage affordability and availability challenges.

Exchanges also rose by 10.4% compared with Q2 2023, showing recovery from the stalling of the sales market in Q3 and Q4 of 2023 due to significant interest rate changes.

Properties priced between £200,000 and £350,000 have seen an increase of over 3.5% in exchanges, while those in the £350,000 to £1 million range are up by 1.3%.

Billany added: “These segments are considered the core of the residential property market and are essential for overall market vitality; without growth here, the market stagnates.

“Conversely, the lower end of the market, properties up to £200,000, has declined by 4.6% as first-time buyers have faced significant challenges due to mortgage availability, affordability issues, and limited stock.

“For properties priced over £1 million, a decline of 2.3% indicates that even those less affected by affordability concerns are experiencing a subdued market at the upper end.”