The Renters’ Rights Act, changing requirements for EPCs, general tax pressures…
There is a lot loaded on the shoulders of buy-to-let landlords, and the narrative that tends to get reported is that many have had enough and are looking to exit the market.
But something interesting is happening beneath the surface. There’s another story emerging, and it’s one that is worth paying attention to.
New figures from Hamptons show that the share of homes being purchased by landlords has climbed to its highest point since 2016. The story behind that statistic is one worth understanding if you own rental property in Ipswich.
Back in 2016, the introduction of the stamp duty surcharge on second homes caused a significant chill across the investor market. What followed was nearly a decade of subdued landlord activity.
So, what’s changed? And why on earth now?
Portfolios reshuffling, not a Buy-to-Let gold rush
It would be so tempting to read these headline numbers as the beginning of a new buy-to-let boom, but the reality is more nuanced… but arguably, it’s actually more interesting.
The data suggests this isn’t all a flood of new investors entering the sector – although there is a bit of that too, and is something we have written about before (see article here). The reality is that many of those new landlords are opting to purchase in the north of England or the Midlands, with a more muted benefit here in Ipswich – albeit, it is something we are beginning to see and feel.
But the story today is that what we are seeing more of right now is experienced landlords buying from other landlords who have decided that now is the right time to exit.
In fact, a record 23% of landlord purchases so far in 2026 involve properties that were previously let by the seller. That’s up sharply from 16% last year, and more than double the five-year average of under 10% recorded between 2019 and 2023. In plain terms: rental homes are increasingly staying within the rental market; it is just that they are often changing hands between investors.
Why are some landlords selling?
It’s no secret that the private rented sector has faced significant headwinds. Higher mortgage rates have squeezed margins, and the Renters’ Rights Act – now on the statute books with Phase One implemented on May 1, 2026 – has introduced new obligations for landlords.
For some, particularly those with smaller portfolios or properties where the numbers were already tight, this has been the nudge to sell up.
And when they do sell, it’s increasingly a fellow investor who steps in, not a first-time buyer – although, as mentioned, sometimes a brand new landlord, often a younger landlord, and often buying through a limited company rather than as an individual, as the previous article I mentioned laid out.
The North-South divide
Here’s where it gets particularly relevant for those of us operating in this part of the country. The growth in landlord purchasing activity has been heavily concentrated in Northern England. Across the North East, North West and Yorkshire & Humber, landlords accounted for nearly 24% of all residential purchases in the first four months of 2026, compared to just 14.5% during the same period last year. In the North West specifically, the landlord share of purchases has more than doubled year-on-year.
By contrast, southern regions have seen barely any change; landlord purchases in the south hover around 9%, much as they did a year ago.
The reason for this divide isn’t difficult to comprehend: it comes down to yields. In many northern areas, rental returns are strong enough to absorb rising mortgage costs and new regulatory requirements, and still deliver a viable investment. Where the maths works, confident investors are doubling down. Where yields are a little narrower – as they often are across much of the South – landlords selling up are more likely to find their property passing to an owner-occupier than to another investor.
Here in the East of England, there’s a little more growth than the South; landlord purchases accounted for 7.6% of sales in January-April 2025; that has risen to 9.3% in January-April 2026 – that’s an extra 1.7% of total residential sales going to landlords, but represents a 22% increase in investor activity in that regard, year on year.
What does this mean for rents?
One side effect worth flagging: in the weeks before the Renters’ Rights Act came into force, some landlords accelerated their decision to sell. That reduced available stock, pushed more tenants back into an already competitive market, and contributed to a late surge in rental growth. While it’s still early days in terms of understanding the full impact of the new legislation, the early signs suggest upward pressure on rents is continuing.
In the HMO space, there is less turbulence. Yields are typically higher, and landlords have been much slower to exit the market. Many HMO landlords are more professional by nature – not in terms of taking their responsibilities more seriously, but in terms of the way they approach it, often as a business or at the very least as an income-generating, equity-growing exercise. They are simply more likely to stick with it for the long term, whether legislation changes or not.
Our take
For landlords in Ipswich who are weighing up their options, the data tells a clear story: the investors who are staying – and particularly buying more rental stock – are those who have done the numbers and are confident the fundamentals still stack up.
If you’re thinking about expanding your portfolio, or if you’re considering whether now is the right moment to consolidate or exit, we would love to have that conversation with you.
We know this market, we know what’s available, and we know what’s letting well. Get in touch with our team and let’s talk through what the current landscape means for your investment strategy.
Note: This article draws on the Hamptons analysis published last week