THE PROPERTY FILTER TAKE
The number that matters: TwentyEA says the UK private rented sector is losing 505 rental properties a day in 2026 to date, over 200% more than in 2020.
From 6 April 2027, £10,000 of rental profit taxed at the higher rate costs £4,200 instead of £4,000, as property income rates rise by 2 percentage points.
Consider re-running your post-2027 figures and speaking to your accountant before you decide whether to hold or sell.
The UK private rented sector (homes let by private landlords) is losing 505 rental properties every day in 2026 to date, according to property data firm TwentyEA. TwentyEA says that is over 200% more than in 2020. And it lists tax among the pressures still pushing landlords out.
How many rental homes have left the sector?
TwentyEA's analysis puts the total at 834,800 properties gone from the private rented sector so far this decade. That is 18.6% of all private rental stock nationwide, and 14.2% in London. The figures cover the whole of the UK, though the Renters' Rights Act only applies in England, TwentyEA notes.
The yearly totals show the speed-up. TwentyEA reported that 111,696 homes left the private rental market in 2024 after landlords sold them. In 2025 the figure was around 181,000, the busiest year for landlords exiting the market. You can check whether your own rent still covers your mortgage at today's rates with our free buy-to-let stress test calculator.
The pace has not eased since. In a follow-up post on rising rental stock, TwentyEA said the daily rate climbed to 562 in Q3 2026, with around 50,600 properties leaving over the quarter. That compares with 495 a day in Q3 2025 and 167 a day in 2020.
How much more tax will landlords pay from April 2027?
TwentyEA names the squeeze on profitability as a main reason landlords keep leaving. It points to Section 24 (the rule limiting the tax relief landlords can claim on mortgage interest and other finance costs). TwentyEA says this means higher-rate taxpayers can no longer claim relief at their full marginal rate. It also cites mortgage rates hovering around 5% and higher bills for repairs and insurance.
The next tax change is already set out. The government's Budget 2025 policy paper, published on 27 November 2025, creates separate rates for property income from 6 April 2027. The rate is 22% at basic, 42% at higher and 47% at additional. Each is 2 percentage points above today's rate, and the change applies in England, Wales and Northern Ireland.
For example, take a higher-rate taxpayer with £10,000 of taxable rental profit. At 40% the liability is £4,000. At the new 42% property higher rate it becomes £4,200, an extra £200 a year. On £50,000 of profit in the same band, the extra is £1,000 a year. The same paper estimates 2.4 million landlords will face a tax increase by 2029 to 2030.
The paper also changes the order of the calculation. From April 2027, general reliefs and allowances will be applied to property income only after other income. Reliefs specific to a type of income still apply to that income first. What this means for your own bill depends on your full position, so speak to your accountant. If you are weighing up personal ownership against a company, our guides to property business structure set out the questions worth taking to that meeting.
What else is pushing landlords to sell?
TwentyEA cites research from Allsop. In it, 42% of landlords said they were unlikely or very unlikely to continue letting, rising to 52% among single-property landlords. Some 30% said they planned to sell all the homes they let out.
Regulation adds cost too, TwentyEA says. It reports that the government expects rented homes to reach an EPC (Energy Performance Certificate, the energy-efficiency rating) of C by 2030, up from E today. TwentyEA puts the government's estimate of average spend at £5,400 per property and says the cost is capped at £10,000 over 10 years. That standard was consulted on for privately rented homes in England and Wales (GOV.UK roadmap). Our free landlord resources can help you plan for these changes.
Not every number points down. TwentyEA says supply of homes to let rose by 118,100 properties, or 13.6%, in 2026 to date compared with 2025. It credits build-to-rent (purpose-built rental homes, typically owned by investors, institutions or large landlords) as one of the key reasons for that growth. If you are deciding whether to stay in, our property investment strategies hub covers the main strategies to weigh.
Key takeaways
TwentyEA says the UK private rented sector is losing 505 rental properties a day in 2026 to date, rising to 562 a day in Q3 2026.
TwentyEA counts 834,800 properties gone from the sector so far this decade, 18.6% of private rental stock nationwide.
From 6 April 2027, property income is taxed at 22%, 42% and 47% in England, Wales and Northern Ireland, 2 percentage points above today.
On £10,000 of higher-rate rental profit, that means £4,200 of tax instead of £4,000.
Consider reviewing your post-2027 numbers with your accountant before deciding to hold or sell.
Frequently asked questions
How many rental properties are leaving the UK private rented sector each day?
When do the new property income tax rates start?
How much extra tax will a higher-rate landlord pay?
Is rental supply falling as landlords leave?
