UK landlords have slowed their exit from the private rented sector, according to research by Goodlord. The shift marks a pause in the years-long wave of departures, though one in four landlords still plans to sell at least one property this year. For HMO operators in particular, this slowdown reshapes both supply dynamics and the legislative landscape heading into May's major regulatory changes.

According to a survey of more than 1,200 landlords by Goodlord (a lettings technology firm), 72% are not currently selling properties. This represents a marked shift from September 2025, when 35% of landlords had sold or actively attempted to sell at least one property in the previous 12 months. The deceleration suggests many investors have moved into a holding pattern ahead of the Renters' Rights Act (the new legislation governing residential tenancies in England) coming into force on 1 May 2026.

Emily Popple, Director of Landlord Experience at Goodlord, noted that whilst fewer departures signal positive movement, "the wider signals are still concerning" regarding long-term sector viability. The hesitation appears tied directly to uncertainty about how the new rules will operate in practice. Landlords are adopting a wait-and-see approach, delaying major portfolio decisions until they understand real-world implications.

For HMO operators, this holding pattern has immediate relevance. If you run a house in multiple occupation (a property with three or more unrelated tenants sharing facilities), your licence conditions already impose strict requirements around notice periods, deposit handling, and property standards. The incoming legislation will layer additional responsibilities on top. Many HMO landlords are pausing sales to assess whether revised licence terms will be required post-May or whether their business model still stacks financially under the new regime.

Beneath the headline figures sits a deeper concern. According to the Goodlord survey, 35% of landlords do not expect to remain in the sector within five years. This suggests the slowdown in exits reflects tactical pause rather than renewed confidence. Portfolio expansion is minimal - only a small proportion of landlords are adding properties.

For HMO specialists, this five-year outlook carries specific weight. Licensing schemes vary dramatically by council. Manchester's additional HMO licensing scheme imposes different conditions to Liverpool's; Bristol's Article 4 direction (a planning tool that tightens rules for conversions to multiple occupation) creates different constraints again. If you operate across multiple areas, you're tracking multiple regulatory timelines. A decision to hold now doesn't necessarily mean commitment to hold indefinitely - it means you're waiting to see which councils tighten conditions further and which relax them.

The minimal appetite for new investment also signals constrained rental supply. Fewer landlords buying means fewer new properties entering the market. For existing HMO operators, this tightens competition for tenants but also puts upward pressure on void rates and management costs if regulations increase.

The Renters' Rights Act takes effect on 1 May 2026 - less than four weeks away. If you're an HMO landlord on the fence about portfolio changes, now is a good time to act. Current tenancies will not be backdated into the new regime, but any new tenancies or renewals after 1 May will sit under the new rules from day one.

Before that date, check your licence conditions. If you hold an HMO licence issued by your local council, verify whether the licence specifies any conditions around property disposal, transfer requirements, or change-of-use notifications. Some councils require you to notify them before selling; others require licence reissue to the new owner. Getting clarity now prevents last-minute complications if you decide to exit later.

The Goodlord survey doesn't suggest the sector is stabilising - rather, it shows landlords are taking time before making bigger calls. For HMO operators, that grace period is closing. You may wish to stress-test your numbers under the new legislation, speak to your local authority about licensing implications, and confirm your position before the rulebook changes on 1 May.