Landlord purchasing activity has slowed markedly with an estimated 170,520 landlords buying a property during the past 12 months compared to 255,780 a year earlier –  a drop of 85,000 transactions, according to Sam Humphreys (pictured) Head of M&A at Dwelly.

The figures come from analysis of both Mortgage Works’ and HMRC’s data that has been carried out by the lettings proptech platform. It also revealed that just 6% of the UK’s estimated 2.84 million landlords have purchased a property over the past year. That’s down from 9% in Q1 2024.

RRB weighing heavily

Humphreys believes it suggests that concerns around the incoming Renters’ Rights Bill are weighing heavily on landlord intentions to grow their portfolios.

He adds that, with potential changes to tenancy rules, eviction processes and compliance requirements on the horizon, many are waiting to see the final form of the legislation before committing further capital.

However, he believes that once the bill has passed and the dust has settled, many landlords will remain in the sector and resume investment activity, particularly in areas with strong rental yields and high tenant demand.

This is not a mass withdrawal from the market; landlords are simply taking stock.”

Humphreys says: “An 85,000 drop in annual landlord purchases is a clear signal that confidence has been dented by regulatory uncertainty, higher borrowing costs and slower house price growth.

“But this is not a mass withdrawal from the market; landlords are taking stock, and who can blame them with the Renters’ Rights Bill set to bring substantial changes to the sector.

“Despite this uncertainty, the fundamentals of the rental sector remain strong, and once the Renters’ Rights Bill is finalised, we expect many will return to buying, particularly in those regions where rental properties continue to bring strong returns on investment.”