An increasing number of properties are being sold by landlords ahead of the Renters' Rights Bill, new data by TwentyEA reveals.

The research claimed that the number of new instructions for the first three months of this year stands at 451,154, of which 70,542 - the equivalent of 15.6% - were prior rentals.

Meanwhile, in the last three month of 2024, 12.2% of all new instructions were properties that had been rented at some point in the last three years. It equates to 39,684 properties.

Of all sold properties in the quarter, only 2.9% were then subsequently let in the first quarter of this year, meaning 3,634 came back into the rental market - indicating these had been purchased by other landlords.  

With approximately 50% to 55% of new instructions going on to sell, it means around 18,000 properties are likely to or have already left the rental market since the fourth quarter of last year, exacerbating the current supply crisis in the rental market.  

Renters’ Rights Bill

Katy Billany, of 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.  

“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”.

Unaffordable rents

TwentyEA’s reasearch also revealed that the supply of new ‘to let’ properties fell by 1% in the first quarter compared with the prior year, which is 22% lower than the pre-pandemic year of 2019.  

The volume of all ‘to let’ homes hit yet another all-time low, with just 284,000 properties currently available across the whole of Britain. It is 18% less than the first quarter of this year and 23% lower than pre-pandemic 2019.  

Around half – at 46% - of available properties are listed at prices exceeding £1,500 a month, with more than 15% requiring tenants to pay at least £3,000 a month. The average let agreed price has now reached £1,767 a month, according to the research. TwentyEA said this made the majority of available rental properties unaffordable for most tenants. 

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