Larger investors are absorbing properties from smaller landlords exiting the sector, driving decade-high BTL activity
The proportion of homes purchased by landlords across Great Britain rose to 13.3% between January and April 2026, matching the level last recorded at the start of 2016 when the second home stamp duty surcharge was introduced, according to data from Hamptons.
The increase follows a prolonged period of subdued investor activity between 2016 and 2025, with the rebound attributed largely to larger landlords acquiring properties from smaller ones exiting the market in response to higher mortgage rates and the Renters' Rights Act.
The sharpest growth has been concentrated in Northern England. Across the North East, North West and Yorkshire & Humber, landlords accounted for 23.9% of buyers in the first four months of 2026, up from 14.5% during the same period in 2025 — levels comparable to those seen before 2016 stamp duty and tax changes.
Within the North, landlords represented 25.3% of buyers in the North West — more than double the 2025 figure — along with 23.8% in the North East and 11.9% in Yorkshire & Humber.
Activity in the South has remained broadly flat. Across London, the South East, South West and East of England, landlords accounted for 9.1% of purchases, marginally above the 8.8% recorded in 2025.
Share of homes bought by a landlord (Jan-Apr) 
Source: Hamptons using Connells Group data
A growing share of buy-to-let transactions now involve properties changing hands between investors. So far in 2026, 23.0% of homes purchased by landlords had previously been let — up from 16% in 2025 and a five-year average of 9.9% between 2019 and 2023.
The trend is most pronounced in the North East, where 35.8% of buy-to-let purchases involved formerly rented homes, compared with 16.8% in London. In the capital, previously rented properties are more frequently being sold to first-time buyers or owner-occupiers.
Share of homes bought by a landlord that had previously been let 
Source: Hamptons using Connells Group data
In a departure from earlier patterns, houses rather than flats are now more likely to remain within the rental sector. In 2026, 60% of previously let homes purchased by landlords were houses, up from 40% five years ago.
Investors acquiring previously rented properties this year achieved an average gross yield of 6.7%, based on the rent at point of sale and the purchase price, rising from 5.7% in 2022.
Meanwhile, average rents in Great Britain rose 1.9% year-on-year in April to £1,396 per month, marking the fifth consecutive month in which the pace of growth strengthened and the fastest rate of increase in 11 months.
Inner London led the acceleration, with new-let rents rising 6.7% over the 12 months to April — the fastest rate since November 2023 — taking average rents to £2,840 per month, 23.0% above their pre-pandemic peak. Inner London is currently the only region where annual rental growth exceeds 3.0%.
Renewal rents also rose, with the average increasing 3.2% year-on-year to £1,312 per month in April. The strongest growth in renewals was recorded in the Midlands (4.5%) and the North (4.8%), where below-market contract rents have left many existing tenants exposed to steeper adjustments.
"With the Renters' Rights Act becoming law against a backdrop of rising mortgage rates, some landlords have taken the opportunity to leave the market," said Aneisha Beveridge (pictured right), head of research at Hamptons. "Increasingly, though, they're passing on their properties to other investors.
"This means the recent spike in landlord purchases reflects homes changing hands between investors, rather than the dawn of a new buy-to-let boom. It's predominantly in areas where the economics of buy-to-let stack up best that homes sold by landlords are most likely to stay within the rental market. Higher yields across much of the North of England are more likely to offset rising mortgage and tax costs. Across much of the South, meanwhile, homes sold by landlords are more likely to be bought by a first-time buyer or owner-occupiers trading up.
"Rental growth strengthened in the final month before the Renters' Rights Act became law. As some landlords opted to sell ahead of the changes, more tenants were forced back into the market, increasing demand for homes to rent. While the full impact of the new rules is yet to play out, early evidence suggests they are already adding to upward pressure on rents."
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