Landlords Are Selling Up and Rents Are Rising: Is Now a Good Time to Buy a Buy-to-Let? (October 2026)
UK rents rose 3.8% in the year to September 2026 while house prices rose just 0.9% and London fell 2.2%. What the latest ONS data says about landlord exits, where rent growth is strongest, and how to test a buy-to-let deal now.
Quick answer: Rents are rising faster than house prices in the UK. The Office for National Statistics reports average private rents up 3.8% to £1,406 in the 12 months to September 2026, while the average house price rose only 0.9% in the 12 months to August, and London prices fell 2.2%. Estate agents say many landlords have sold, which keeps rental supply tight. That favours buy-to-let investors who buy well, but higher tax from April 2027 and expensive mortgages mean the numbers must stand up on net yield.
What the Latest ONS Data Shows
The ONS published new figures on 21 October 2026 (Private rent and house prices, UK: October 2026):
| Area | Average monthly rent | Annual rent growth |
|---|---|---|
| UK | £1,406 | 3.8% |
| England | £1,466 | 4.0% |
| London | £2,338 | 3.5% |
| North West | Not stated | 5.7% (highest English region) |
| North East | £790 (lowest) | Not stated |
| Wales | £848 | 4.1% |
| Scotland | £1,011 | 0.7% |
Rent figures are provisional and cover the 12 months to September 2026. Over the same period to August, the UK average house price rose 0.9% to £273,000. England rose 0.4%, Wales 3.1% and Scotland 2.9%. London had the weakest English change at -2.2%, driven largely by falling flat prices.
Why Landlords Are Selling Up
Commentators quoted by Mortgage Solutions this week say that rents are high because so many landlords have sold or are trying to sell, with more to come as tenancies end. The pressures are well known: the mortgage interest restriction for individuals, higher property income tax rates from April 2027 (see our guide to the 2027 rates), tougher tenancy rules under the Renters' Rights Act, the end of Section 21 (see how eviction works now) and energy efficiency targets (see the EPC C rule for 2030). We could not find an official count of landlord exits, so treat claims of a specific number of sellers as estimates.
What Falling Supply Means for Buyers
Fewer rental homes with steady demand supports rents, and the ONS shows rents rising across every English region. At the same time, flat or falling prices in London give buyers room to negotiate. Together these create a gap between purchase price and rent, which is how yield improves. The opportunity is not equal everywhere:
- North West and the regions: the fastest rent growth (5.7%) and lower prices, with Liverpool and London compared.
- London: rent growth of 3.5% is joint lowest in England, but prices are falling and buyers have leverage. See buying below market value.
- Scotland: rent growth of 0.7% is the weakest in the ONS data, so avoid assuming national trends apply everywhere.
The Risks That Remain
- Tax rises. The Budget on 28 October 2026 may add changes. Read our Autumn Budget guide for landlords.
- Mortgage costs. Rates stay high even with the Bank Rate on hold, as we explain in why mortgage rates are rising.
- Regulation. Compliance costs, licensing and possession rules are changing, so the cost of letting is rising.
- Rent growth has plateaued. UK rent growth is unchanged at 3.8% month on month, and Scotland's 0.7% is reported as the lowest since records began in 2016.
How to Test a Buy-to-Let Deal Now
- Start from realistic rent for the street, not national averages.
- Stress-test the mortgage at a higher rate with the BTL affordability calculator.
- Model tax under the new rates with the Section 24 calculator and compare personal and company ownership with the Ltd company vs personal calculator.
- Check net yield on the rental yield calculator and the stamp duty on the stamp duty calculator.
- Prefer deals with built-in value, such as a refurbishment, over deals that rely on rising prices. See what the BRRR strategy is.
Frequently Asked Questions
Are UK rents still rising?
Yes. The ONS reports average private rents up 3.8% in the 12 months to September 2026, with England at £1,466 (up 4.0%).
Are UK house prices falling?
Not on average. The ONS reports a 0.9% rise to £273,000 in the 12 months to August 2026, but London fell 2.2% and England rose only 0.4%.
Why are landlords selling up?
Higher taxes, mortgage costs, tougher regulation and the end of Section 21 are the main reasons given by agents and industry bodies. There is no official count of exits.
Is it a good time to buy a buy-to-let?
It can be, if the numbers work after tax and mortgage costs. Tight rental supply supports rents, but returns depend on the price you pay, your financing and your tax position.
Which part of the UK has the fastest rent growth?
The North West had the highest annual rent growth of any English region at 5.7%. London and the South East had the lowest at 3.5%.
Key Takeaways
- UK rents rose 3.8% in the year to September 2026 while house prices rose only 0.9% to August.
- London prices fell 2.2%, giving buyers negotiating room, but London rents are growing slowest in England.
- Landlord exits keep rental supply tight, though no official exit count exists.
- Tax rises from April 2027 and high mortgage rates mean you should test every deal on net yield.
This article is general information, not financial, tax or legal advice. Figures are from the ONS October 2026 release and are provisional. Check current rules and figures with qualified advisers before investing.