Sales of tenanted rental properties at auction increased by 70% in April compared to the same period last year, according to data from Auction House, as the impact of the Renters’ Rights Act prompts smaller landlords to exit the market.
The auctioneer reported 46 tenanted rental properties sold in April 2025, up from 27 in April 2024. Properties with sitting tenants are selling at discounts of 30% to 40%, creating acquisition opportunities for established landlords.
Market consolidation underway
Philippa Martinez, National Sales Manager at Auction House, told the Daily Telegraph that accidental or part-time landlords are seeking quick exits from the market. “It is a good time for those larger landlords that run their properties like a business, are experienced in what they’re doing and are unfazed by the new reforms, to snap up a deal and add to their portfolios,” Martinez said.
She noted that smaller landlords are showing a “knee-jerk reaction” to the reforms, whilst larger operators are acquiring properties at reduced prices.
Professional landlords dominating purchases
David Coughlin, Chief Executive at Landlord Sales Agency, reported that more than 50% of the company’s sales in recent weeks have been to landlords with portfolios of 10 to 15 properties. “They’re not massive landlords with 1,000 properties. They’re hungry buyers who have been in the market for a while and are set up with limited companies,” Coughlin said.
He identified two main categories of sellers: landlords aged 60 to 70 seeking retirement, and those concerned about potential fines and deteriorating financial returns. The buyers, by contrast, operate through limited company structures and are not deterred by the regulatory changes.
The pattern follows broader trends in UK property sales, where market activity has increased despite regulatory headwinds. The shift represents a consolidation within the rental sector, with professional landlords acquiring properties from smaller operators at discounted prices.
The data suggests the Renters’ Rights Act is accelerating a structural change in the rental market, transferring properties from individual landlords to more professionalised operators with greater resources to navigate regulatory compliance.
