The proportion of rental properties being placed on the market by landlords has risen significantly, according to new figures from property data firm TwentyEA. In the first quarter of 2025, 15.6% of all new property listings were homes that had previously been let, up from 9.8% during the same period in 2024.

In total, there were 451,154 new instructions in Q1 2025. Of these, 70,542 were properties that had formed part of the private rental sector within the past three years. TwentyEA, part of the TwentyCi Group, reports that the data reflects a continuing trend of landlords choosing to exit the sector.

The company’s latest Property & Homemover Report also highlights that only 2.9% of properties sold in Q4 2024 were re-let during the following quarter. This equates to 3,634 homes re-entering the rental market, suggesting that most rental stock sold is not being acquired by new or existing landlords for continued letting.

Based on historic trends showing that around half of all new listings proceed to completion, it is estimated that approximately 18,000 homes have exited—or are likely to exit—the private rented sector since the final quarter of 2024.

Meanwhile, the number of new rental listings has continued to decline. Compared with Q1 2024, there was a 1% fall in new 'to let' instructions. Compared to Q1 2019, the drop is more significant, with current supply now 22% lower. Across the UK, 284,000 rental properties are currently available, representing an 18% decrease year-on-year and a 23% fall relative to pre-pandemic levels.

This reduced supply has coincided with continued upward pressure on rents. Forty-six percent of available rental properties are now marketed at over £1,500 per month, while more than 15% are listed above £3,000. The average monthly agreed rent stands at £1,767, raising ongoing concerns around affordability.

Katy Billany, executive director at TwentyEA, said: “The rental market remains under significant strain, with tenants across the country facing a chronic shortage of homes.

“Our analysis reveals that a growing number of landlords are selling up to exit the sector and there’s a common misconception that other landlords will buy their properties and reintroduce them to the lettings market. By and large though, this is not what we’re seeing.

“In Q4 2024, approximately 40,000 former rental properties were listed for sale while only 3,600 were let in Q1 25 suggesting they had been purchased by other landlords. If 50-55% of the previous rental homes listed for sale go on to sell, it suggests that around 18,000 homes will exit the private rental sector or have already done so.

“The rental market is experiencing an accelerated adjustment phase as supply constraints intensify and rental costs continue their upward trajectory ahead of the Renters’ Rights Bill implementation. Notably, market indicators have been signalling these shifts prior to the formal introduction of the legislation, reflecting broader underlying dynamics. The private rental sector demonstrates significant volatility, a condition that analysis suggests will persist throughout the near-term planning horizon.”

The figures come amid growing scrutiny of conditions in the private rental market, as policymakers prepare to introduce further reforms through the Renters’ Rights Bill. However, the current data suggests that landlords’ decisions to leave the sector are being driven by broader market factors beyond upcoming legislation alone.