Landlords Selling Up: Why I’m Still Buying UK Buy-to-Let
September 6, 2026
When I see another headline about landlords selling up, my first question isn’t whether I should sell too. It’s why that particular owner wants to leave, what they’re selling and whether the price makes sense for somebody with different circumstances.
I’ve been investing in property for around fifteen years and own more than £3.5 million worth. I’ve bought properties I’m pleased with and others I wouldn’t buy again today. I’ve also experienced changing taxes, regulation and borrowing costs. I understand why some owners have had enough.
But in my video on 6 September 2026, I explained why I was still looking to buy in the UK. One landlord deciding to sell doesn’t automatically mean the asset is a bad investment. Sometimes it means the property no longer suits that person, while another investor can make it work at the right price.
Why selling can be a sensible decision
Higher mortgage rates have made a real difference to my own portfolio. In the video, I described the additional annual cost as well over £50,000 and potentially closer to £70,000. That wasn’t a theoretical example of what higher borrowing costs might do. It’s something I’ve had to deal with.
If you’ve become used to borrowing at 2% or 3%, refinancing at 5% or 6% can change both the monthly cash flow and how you feel about the investment. More tax and additional responsibilities can make the calculation less attractive again.
I can understand an owner with one or two properties, perhaps approaching retirement, deciding to release their equity. They may have done very well over the years and now value simplicity more than continuing to collect a relatively modest amount after costs.
There is no contradiction in recognising that as a sensible decision while reaching a different conclusion myself. We’re not necessarily trying to achieve the same thing or investing over the same remaining timescale.
The mistake is treating every sale as a verdict on the entire buy-to-let market. A personal decision tells us something about the seller’s position. It doesn’t tell us everything about the property’s suitability for its next owner.
Landlords can be buyers as well as sellers
The research I discussed in the video came from Hamptons’ Summer 2026 market report. It found that landlords accounted for 13.3% of home purchases between January and April in its Great Britain analysis, the highest share since 2016.
It also reported that 23% of homes bought by landlords had previously been let. That is the part I find particularly useful when thinking about the “landlords are leaving” story: some rental properties are changing hands between investors.
Those figures describe a particular dataset and period. They don’t prove that every area has strong investor demand, that every departing landlord sells to another landlord or that the total supply of rented homes must be increasing.
What they do show is that selling and buying can happen at the same time. One owner wants their capital back. Another sees an asset they would be happy to hold. Both can be making a rational decision.
At 42, when I recorded the video, I was firmly in the camp of looking for properties I could be comfortable owning for the next twenty years. That longer horizon influences how I weigh a difficult year against a sensible purchase.
The kind of seller I’d rather deal with
I don’t particularly want to negotiate with somebody who has put a house online at an ambitious price and will only move if they receive every penny. I prefer a seller who actually wants a transaction to happen.
Perhaps a tenant has left, a mortgage is approaching renewal or the owner has decided they want the equity for something else. They may be willing to accept a lower price in return for a credible buyer and a more straightforward process.
That doesn’t mean taking their urgency as proof of a bargain. I still need to understand the property’s condition, the local demand and why it’s being sold. Speed and certainty only have value if I can honestly deliver them.
Nor does buying from another landlord remove the need for proper checks. If a tenant is staying, I need my solicitor and managing agent to establish the tenancy position, deposit records, rent payments, relevant safety documents and any unresolved issues. I don’t want to discover after completion that the paperwork or the income is different from what I expected.
The seller’s motivation can create an opening for negotiation. The due diligence tells me whether I should use it.
My £135,000 purchase example
The kind of property I keep coming back to is fairly ordinary: a two- or three-bedroom house on a reasonable street in a town with rental demand. Nothing glamorous, but something people need and that I can buy at a sensible price.
In the video, I used a property worth around £150,000 that could be bought for £135,000. On the assumption that a lender advances 75% of the purchase price, the mortgage would be £101,250 and the deposit £33,750.
By the time I allow for purchase taxes, legal costs, mortgage fees and some work to get it ready, I estimated £45,000 to £50,000 of my own cash committed to the deal. That’s an illustrative budget, not a promise that every buyer can complete for that amount.
The tax depends on the buyer and location, while refurbishment needs can change the cash requirement considerably. I’d also want a reserve after completion. Using every available pound just to get the keys can leave a good-looking deal in a fragile position from the start.
The rent in my example was £1,050 a month, similar to a deal I’d recently done. That’s £12,600 a year before costs. Against a £135,000 purchase price, the gross yield is approximately 9.3%.
Work out what is left after the costs
Gross yield is a starting point. It doesn’t pay attention to the mortgage or all the expenses of running the property.
In the video, I allowed approximately £5,000 a year for mortgage interest, then considered management, maintenance, empty periods, insurance and the other normal costs. The example left around £400 a month, or £4,800 a year, after those allowances.
That is an illustrative operating cash-flow figure before any personal or company tax that applies. It isn’t a guaranteed after-tax income. The approximate £5,000 interest cost also depends on the loan and rate available; on £101,250 of borrowing, it implies a rate just under 5%.
If the mortgage instead cost 6%, the interest would be £6,075 a year. Holding the other assumptions constant, that would reduce the £4,800 figure by about £1,075. This is why I need a real mortgage quotation and a properly itemised budget before deciding the deal works.
On £45,000 to £50,000 of cash invested, £4,800 represents roughly 9.6% to 10.7% a year before tax. That’s the cash-on-cash comparison behind my point in the video, not a return calculated solely against the deposit while ignoring the rest of the purchase costs.
Buying below value and earning rent are different benefits
If the property is genuinely worth £150,000 and I pay £135,000, the difference is £15,000. That’s slightly more than three years of the £4,800 annual rental cash flow in the illustration.
It’s why I put so much emphasis on buying well. A good entry price can make a substantial difference before I start relying on future growth.
But the £15,000 is a potential value advantage, not £15,000 of cash profit arriving on completion. I need evidence for the valuation, and buying costs reduce the overall economic benefit. If I later sell or refinance, the valuation, transaction costs, lending criteria and tax position will matter too.
An optimistic asking price isn’t enough. I’d want comparable evidence and a sensible assessment of what another buyer or lender would recognise as the value.
I also keep that potential equity separate from the monthly rental return. They help the investment in different ways. A paper valuation can’t be used to pay the mortgage unless I can actually access money, and borrowing more against it creates a new liability.
The same interest rate can mean very different cash costs
A higher mortgage rate affects an inexpensive house differently from an expensive one with much more debt. A one-percentage-point increase costs £1,000 a year on £100,000 of interest-only borrowing, but £4,000 on £400,000.
The percentage is identical; the strain on the rental income may be very different. That helps explain why I don’t treat the entire UK as one investment market.
My London property is a good example of the distinction between something I’ve owned successfully and something I would buy fresh today. It has been a good purchase over my ownership, but recent capital growth has been limited, and I wouldn’t buy it at today’s price purely on the current investment figures.
Selling isn’t a simple reset either. I’ve refinanced it over the years, and the potential capital gains tax bill is an important part of why I haven’t sold. My existing position and a new buyer’s position are different calculations.
You can read more about how I assess changing borrowing costs in my buy-to-let mortgage cash-flow article.
Rental demand helps, but national averages aren’t a deal appraisal
The ONS private rent bulletin published in August 2026 reported average UK private rents rising 3.7% over the twelve months to July 2026. That provides useful context for the rental market I was discussing.
It doesn’t tell me what a particular house will let for. I still need local evidence, the condition and size of the property, realistic letting times and advice from people managing similar homes in that area.
I remain positive about the potential combination of rental income, long-term value growth and inflation reducing the real burden of nominal debt. But those are reasons to investigate a good investment, not guarantees that every property will perform.
A poor purchase, excessive borrowing or a long period of weak cash flow can overwhelm the advantages. The ability to hold the asset comfortably is part of the strategy, not an optional extra.
What would make me comfortable buying from a selling landlord?
I’d want a credible reason for the sale, a price supported by evidence, realistic rent and a complete understanding of the costs. I’d want to know what repairs are approaching and, if the tenant is staying, exactly what tenancy and responsibilities I’m taking on.
I’d also want the property to fit my plan. Being cheaper than it was last year doesn’t automatically make it the right thing for me to own for the next twenty.
That’s the question behind the headlines: does this particular investment make sense for the buyer at this particular price? Some landlords will reasonably decide to leave. Others will reasonably decide to buy. I’m interested in doing the work that tells me which side of a particular transaction I want to be on.
For a broader look at choosing the asset, see my comparison of houses and flats.
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Watch the original video
Watch why I’m buying while other landlords are selling, published on 6 September 2026.