We have seen a surge of buy-to-let stock come to market as smaller landlords exited ahead of new legislation – and larger, more prepared investors have made the most of it.
We saw a 70% year-on-year increase in tenanted properties sold through our weekly online auctions in April, as landlords looked to exit the market ahead of the Renters’ Rights Act coming into force on 1st May.
The shift has created a two-speed market. As some smaller or less compliant landlords sold up, a growing number of experienced investors have acquired their properties at significant discounts, sometimes 30 to 40% below vacant possession value.
The trend has been visible in auction results nationwide. A tenanted property in Newcastle recently attracted 86 bids in a single online auction, selling for £219,000 against a guide price of £115,000.
Research by Goodlord found that a quarter of landlords surveyed were actively selling or looking to sell some or all of their portfolio. Oliver Prior, Managing Director of Auction House UK, says the impact has been clear in the group’s listings:
“This has presented a real opportunity for well-capitalised landlords who are prepared to adapt. Larger landlords, or those with stronger systems in place to manage their properties, have not not only capitalised on continued demand, but snapped up properties being sold off as others exited the market. We have seen this in action across our auction rooms nationwide.”
A reshaping, not an exodus
Sam Harris, Auction House’s Regional Manager for rental hotspots South Yorkshire, Notts & Derby and the North East, has been monitoring the pattern closely:
“I wouldn’t characterise this as a wholesale exodus. What we’re seeing is more of a reshaping of the market. As some smaller or less compliant landlords sell up, there’s been growing interest from more experienced and well-capitalised investors who are taking a longer-term view. These landlords tend to be more comfortable operating within a regulated environment and are often better equipped to manage tenancies effectively.”
“In the current market, this shift has created some interesting opportunities. We’ve seen tenanted properties – even in desirable areas – selling at significant discounts, sometimes in the region of 30-40% below vacant possession value. For investors who understand the regulatory landscape and are prepared to adapt, there has been clear potential to acquire assets at attractive prices.”
Philippa Martinez, Regional Sales Manager for Auction House Kent, argues that many landlords were too reactionary when the Act was announced:
“There was a bit of a knee-jerk reaction, which led to an influx of landlords looking to sell up quickly. Some were afraid that they would end up stuck or unable to take their properties back into possession. Professional landlords who run their rentals as a business have been less affected as they were probably already playing by these new rules. Now, there is an attitude of waiting to see what happens. Some landlords may see that the new conditions were not as frightening as they first appeared. I believe this will tighten up the market giving the landlords that remain the chance to thrive.”
The unintended cost to tenants
The sell-off has had a direct impact on rental supply, with consequences for the tenants the legislation was designed to protect. Oliver Prior said:
“The reduction in rental stock creates greater competition and pushes rental values up. Forecasters are still estimating annual national rental growth of 3 to 6% this year, with tenant competition remaining above pre-pandemic levels. If the purpose of the Act was to support renters with the cost of housing, the result has been anything but.”
Philippa agrees:
“The initial big sell-up has tipped the balance of supply and demand once again. Extra costs incurred by landlords will also inevitably be passed back to the tenants. Housing supply across the board needs to be re-evaluated and a solution found to make buying or renting a home affordable to all.”
Why landlords are choosing auction
Auction has proven to be a popular route with landlords looking to exit the market thanks to the speed of completion and the ability to sell properties that are still tenanted – forgoing the need to implement a last-minute Section 21 notice before the 1st May.
Competition for tenanted stock at auction has been strong, particularly where properties carry an attractive guide price. The Newcastle example with 86 bids, selling at almost double the guide price, is an illustration of that appetite.
Looking ahead
Looking forward to the rest of 2026 and beyond, Oliver concluded:
“The Act marks a change in the private rental sector, but the impact should not be as severe as was initially feared. There is good opportunity for landlords who are prepared to adapt and make the most of it.”
Sam agrees with this prediction:
“I think the Act will ultimately raise standards across the sector, which should be positive for both tenants and professional landlords. While it may deter those looking for short-term or hands-off investments, there will still be strong opportunities for landlords who are compliant, well-informed and focused on long-term portfolio growth.”
About Auction House
We are a UK-wide brand with a local presence. We operate across England, Wales, Scotland and Northern Ireland, holding close to 200 online, livestream and in-room auctions every year.
Despite being a nationwide brand, we pride ourselves on maintaining a regional presence. With local, knowledgeable teams, we offer a truly personalised service to sellers, buyers and partners alike.
About our commentators
Oliver Prior, Managing Director of Auction House UK
Oliver Prior, a Chartered Surveyor, joined Auction House in 2021 as an Auction Valuer, rising to Auctioneer and then National Commercial Director. In 2026, he became the group’s Managing Director.
He previously worked in mixed-use development consultancy and corporate commercial advisory at Savills and CBRE respectively. As Managing Director, he now uses his extensive auctioneering and business knowledge to steer the group’s future operations and strategic goals, focusing on bolstering Auction House’s reputation as the leading UK property auctioneer.
In addition to his key responsibilities, Oliver finds time to be an active member of the Royal Institution of Chartered Surveyors (RICS) and contribute to a working group within the RICS dedicated to improving best practice within the property auction industry.
Sam Harris, Regional Manager of Auction House South Yorkshire, Auction House Notts & Derby and Auction House North East
Sam began his career in property over 14 years ago and has remained passionate about the industry ever since. In 2020, he joined Auction House to relaunch the South Yorkshire region, starting from scratch as the sole team member. Since then, he has expanded his reach into additional regions across the UK, developing a high-performing operation. Sam now leads a team of 18, who collectively sell in excess of 150 properties each month.
Philippa Martinez, Regional Sales Manager for Auction House Kent
Philippa Martinez has 27 years of estate agency experience and a particular talent in driving sales through to exchange and completion. After looking for a faster-paced challenge, she made the switch to Auction House – and hasn’t looked back. Now based at the company’s head office in Norwich, she leads the Central Team and manages Auction House Kent, using her extensive knowledge to deliver results.
