Finding a rental home in the UK is becoming increasingly complex as more landlords leave the market. New figures released in January 2026 show that thousands of rental properties have been sold over the past year, shrinking the number of homes available to rent. This growing shortage is now putting upward pressure on rents across much of the country.
One of the main reasons behind this shift is the new housing legislation being introduced by the UK government. From May 2026, “no-fault” evictions will be prohibited, meaning landlords will no longer be able to evict tenants without providing a specific reason. While tenant groups have welcomed the change, many landlords say the new rules reduce their flexibility and increase risk, prompting them to sell their properties before the law comes into force.
Rising costs are also playing a significant role. High mortgage interest rates, combined with recent tax changes, have made owning rental properties far more expensive than in previous years. For smaller landlords in particular, profits have been squeezed, making renting out homes less attractive financially.
For renters, the impact is already being felt. With fewer homes available, competition is increasing, and prices are climbing. Housing experts warn that rents could rise by a further 3% this year, adding to the pressure on households already struggling with the cost of living. As demand continues to outstrip supply, many fear the rental market will remain tight well into 2026.
Overall, the steady exit of landlords from the rental market is tightening supply and pushing rents higher, leaving tenants with fewer options and rising costs. Without changes that balance tenant protection with incentives for landlords to stay, pressure on the UK rental market is likely to continue.
