Older landlords are retiring and leaving the buy-to-let market, said Hamptons.

The estate and lettings agency estimated that around 140,000 landlords retired in 2022, accounting for nearly three-quarters (73%) of all landlord sales.

In its March Lettings Index, Hamptons predicted this figure will rise over the coming years, with around 96,000 landlords turning 65 each coming year across Great Britain. This is in addition to the almost one million landlords (924,000) who are already over the age of 65.

Nationally there are around 2.75m landlords.

First ever buy-to-let landlords

Just over half (51%) of today’s total number of outstanding buy-to-let mortgages were taken out between 1996 and 2007, when buy-to-let was first launched as a mortgage product.

It’s this cohort of ageing investors that are now increasingly likely to sell up and cash out, said Hamptons, leaving a gap which is not being filled by new landlords.

Many of the first buy-to-let mortgages were used to purchase new low-rise city centre flats and it’s these flats which form the largest proportion of sales by today’s long-term landlords.

Age is the main reason for selling, but the decision has been compounded by lower-than-average returns and higher interest rates. These factors, plus tighter regulation, have motivated landlords to sell and also put off potential new landlords.

Hamptons explained that, ‘while the tax and regulatory changes haven’t driven a buy-to-let sell off, they have stemmed the next generation of landlords. The number of new purchases by landlords has remained relatively muted. Millennials, who have struggled to get onto the housing ladder, have not been in a position to afford or consider purchasing a buy-to-let too’.