Fifty-seven percent. That is the share of letting and estate agents who told Propertymark they have already been contacted by landlords asking about selling up, just days after the Autumn Budget. Between them, those enquiring landlords hold an estimated 2,860 properties. This is not a forecast. It is happening now, in November 2026, and it has direct consequences for anyone in London who owns, rents, or is thinking of buying a former rental home.
This article explains what the survey actually shows, why landlords leaving rental market Budget 2026 fears have resurfaced, and what practical steps London landlords, remaining investors, and buyers of ex-rental properties should take next.
Key Takeaways
- Propertymark found 57% of agents have received enquiries from landlords considering leaving the private rented sector since the Budget, covering an estimated 2,860 properties.
- These are enquiries, not confirmed sales, Propertymark and The British Eye are clear this does not yet prove a mass exodus.
- From April 2027, income tax on rental income for individual landlords rises a further 2 percentage points, taking rates to 24%, 44% and 49% depending on band.
- The stamp duty surcharge on second homes rose from 3% to 5% with immediate effect, and a High Value Council Tax Surcharge on £2 million-plus homes starts billing in March 2028.
- TwentyEA estimates former rental homes already make up 15% of properties listed for sale, and the sector has lost more than 800,000 rental properties since 2020.
The Budget Announcement Driving the Numbers
Chancellor John Healey delivered the Autumn Budget on 28 October 2026. For individual landlords, the headline change was a further 2 percentage point rise in income tax on rental income, layered on top of a previous 2-point rise already announced by Rachel Reeves. From April 2027, landlord income tax rates will sit at 24%, 44% and 49% depending on which band applies. This change affects individuals who own buy-to-let property directly; it does not apply to landlords who hold property through a company structure.
Alongside this, the stamp duty surcharge on second-home purchases rose from 3% to 5% with immediate effect, a point highlighted by LSL's Paul Hardy. The Budget also confirmed a High Value Council Tax Surcharge on homes worth £2 million and above, with first bills due in March 2028.
Together, these measures raise the running cost of holding rental property, particularly for individual landlords with higher-value London portfolios.
Why Propertymark's Survey Matters for London Landlords
Propertymark represents almost 20,000 estate and letting agents across the UK, giving its membership survey real weight as an early signal. Its post-Budget poll found that 57% of responding agents had been approached by landlords asking about leaving the private rented sector. Collectively, those enquiring landlords account for an estimated 2,860 properties.
It is important to be precise about what this figure does and does not show. These are enquiries reported by agents, not completed sales or confirmed instructions to sell. The British Eye, reporting on 7 November 2026, was explicit on this point. A landlord asking a letting agent about selling up is a sign of intent, not a done deal.
Still, for London specifically, where property values and rental yields are both higher, the tax changes bite harder in cash terms for individual landlords. An enquiry wave of this scale is a meaningful early indicator for the capital's rental supply.
Context: Is This a Landlord Exodus or Not
The debate over landlords leaving rental market Budget 2026 sits against a backdrop of genuinely mixed evidence.
On one side, TwentyEA estimates that former rental properties now make up 15% of all homes currently listed for sale, and more than 800,000 properties have reportedly left the private rented sector since 2020. The NRLA has warned that extra costs from the Budget could affect whether landlords keep hold of properties, raise rents to cover the difference, or leave the sector altogether.
On the other side, the Ministry of Housing, Communities and Local Government says there is no evidence of a large-scale landlord exodus. It points to protections under the Renters' Rights Act, including the ability for tenants to challenge above-market rent increases and a ban on rental bidding wars, as reasons the sector remains functional for tenants.
Rent arrears data adds another layer. Reposit reported on 5 November 2026 that 18% of tenancies were in arrears in the third quarter of 2026, up from 12% a year earlier, a trend that may itself be prompting some landlords to reconsider their position, separate from tax changes.
Savills, meanwhile, forecasts average UK rents rising 15% by 2031, with London rents rising 16% over the same period, suggesting that even with some landlords leaving, demand pressure is expected to keep pushing rents upward.
| Factor | What the data shows | Source |
|---|---|---|
| Agent enquiries | 57% of agents contacted by landlords considering selling, c.2,860 properties | Propertymark |
| Former rental stock for sale | 15% of current sale listings | TwentyEA |
| Rental stock lost since 2020 | 800,000+ properties | Reported figure |
| Rent arrears | 18% of tenancies in Q3 2026, up from 12% | Reposit, 5 Nov 2026 |
| Forecast rent rises by 2031 | UK +15%, London +16% | Savills |
| Official government view | No evidence of large-scale exodus | MHCLG |
For London Landlords Weighing Up Selling
If the Budget has prompted serious thoughts about selling, the first practical step is establishing an accurate, evidence-based valuation before instructing an agent or accepting an offer. A pre-sale survey or RICS valuation provides:
- A realistic current market value, reflecting condition rather than guesswork
- Early identification of defects that could slow a sale or reduce offers
- Supporting evidence if a tenant or buyer disputes the asking price
- A clear basis for decisions on repairs versus "sell as seen"
Selling a tenanted or recently vacated property in London carries its own complications, from access for viewings to condition disputes with outgoing tenants. A chartered surveyor's report gives a factual starting point before the property reaches the open market.
For Buyers of Ex-Rental Homes: What a Survey Checks
With former rental properties making up a growing share of listings, buyers need to understand that a previously tenanted home can carry wear and issues that owner-occupied properties typically do not show to the same degree. A RICS Level 2 (HomeBuyer) or Level 3 (Building) survey on an ex-rental property typically looks closely at:
- General wear and tear from multiple tenancies, including flooring, kitchens and bathrooms
- Damp and ventilation issues, which can build up where properties were let without consistent heating use
- Unauthorised alterations made by tenants or previous landlords without proper permissions
- Electrical and gas safety certification history, checking records are current and consistent with what is visible on site
- Signs of deferred maintenance where a landlord may have minimised spend ahead of a sale
Buyers should treat a former rental listing as a prompt for a more thorough survey, not a reason for caution to be waived.
For Landlords Staying in the Market
Not every landlord is heading for the exit. For those remaining, especially as arrears rates rise and tenancy turnover increases, a condition report or schedule of condition at the start and end of each tenancy is a practical safeguard. These documents:
- Provide objective evidence of a property's state before a tenant moves in
- Help resolve deposit disputes quickly and fairly
- Support maintenance planning ahead of future lettings or an eventual sale
Given the Renters' Rights Act protections now in place, clear documentary evidence matters more than ever for landlords managing ongoing tenancies.
Frequently Asked Questions
Does the Propertymark survey prove landlords are leaving the market?
No. It shows 57% of agents received enquiries about selling from landlords, covering an estimated 2,860 properties. These are enquiries, not confirmed sales, as reported by The British Eye on 7 November 2026.
What are the new landlord tax rates from April 2027?
Individual landlords' income tax on rental income rises to 24%, 44% or 49%, depending on band, following a further 2 percentage point increase confirmed in the October 2026 Budget. This does not apply to companies.
Has the stamp duty surcharge on second homes changed?
Yes. LSL's Paul Hardy noted the surcharge on second-home purchases rose from 3% to 5% with immediate effect from the Budget.
Should I get a survey before buying a former rental property?
Yes. A RICS Level 2 or Level 3 survey can identify wear, damp, unauthorised alterations and certification gaps that are more common in previously tenanted homes.
Is there an official government view on a landlord exodus?
MHCLG says there is no evidence of a large-scale exodus and points to Renters' Rights Act protections, including limits on above-market rent increases and a ban on rental bidding wars.
Conclusion
The Propertymark survey is a genuine early signal, not proof of a mass sell-off. For London landlords, the combination of higher income tax rates from April 2027, the raised stamp duty surcharge, and the coming council tax surcharge on high-value homes makes this a sensible moment to get clear, independent evidence before deciding whether to sell, hold, or restructure. Buyers eyeing former rental stock should insist on a proper survey rather than assuming a quick sale means a problem-free property.
Prince Surveyors, RICS-regulated chartered surveyors covering London, can help with pre-sale valuations, RICS Level 2 and Level 3 surveys on former rental homes, and condition reports for landlords staying in the market. Contact the team to book a survey or valuation.
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