June 27th, 2025 | DampHub News
Seven in ten UK landlords (69%) are expected to sell at least one property in the next 12 months, according to new research, marking a sharp shift in the buy-to-let landscape.
The trend is being fuelled by rising costs and tightening regulations, with landlords pointing to issues such as tax changes, maintenance expenses, and reduced profitability as their main reasons for selling.
Regulation Is the Top Concern in 2025
For 43% of landlords, changing regulations is the biggest financial worry this year. Much of the concern centres around the Renters’ Rights Bill and the upcoming rollout of Making Tax Digital, which will require quarterly digital submissions from April 2026.
Maintenance costs were the next most common concern (24%), followed by increased taxation (13%) and rising mortgage interest rates (12%).
Confidence in Profitability Is Falling
When asked about their outlook, a growing number of landlords admitted they were losing faith in the market.
- 14% said they were “very unconfident” about long-term profitability
- 17% said they felt “somewhat unconfident”
- Just 10% reported feeling “very confident” about staying in the rental sector
One respondent noted it is simply “no longer financially viable” to remain a landlord.
Rental Profits Flat for Many
Over the past 12 months, rental returns have remained uncertain:
- 32% of landlords said profits had increased
- 34% reported a drop
- Another 34% said profits stayed the same
Despite some landlords seeing gains, the overall trend is pushing many to consider downsizing or exiting altogether.
Only 7% said they were looking to buy additional properties or expand their portfolio in the year ahead.
Expert View: “This Is a Tipping Point”
Mike Parkes, technical director at GoSimpleTax, commented:
“These findings show a clear tipping point for landlords as confidence in profitability drops but costs keep rising. Many landlords are scaling back or leaving the market entirely.
Some mandatory changes, such as Making Tax Digital, don’t have to be a burden. With around ten months to go, preparing for it early by getting comfortable with digital reporting ahead of time will help landlords to reduce stress and stay compliant. It should be a key consideration for any property professionals thinking about their next steps.”
For the latest on regulations, rental returns, landlord advice, and home improvement trends, check out the DampHub News section.
