The Four Types of Landlords Likely to Sell in 2026

Accidental Landlords:

Whether it’s someone who kept their previous home when they moved, inherited a property, or a had short-term let that quietly became long-term, these are people who never planned to become landlords. They have formed a large part of the supply coming to auction this year and show no signs of slowing into 2026.

The combination of rising maintenance costs, increasing admin burdens (on top of the “day job”), growing compliance requirements, and changing mortgage terms means many of these landlords no longer see the value in holding on.

When a tenant moves out or a remortgage is due is typically the point at which they decide to sell – often viewing auction and it’s fixed timeline as the favourable route over private treaty.

I expect this group to remain a steady, predictable source of instructions in 2026. 

Smaller Portfolio Landlords:

Landlords with one to five properties are generally feeling the most cumulative pressure. While their models aren’t failing, they are operating with far tighter margins than they were five years ago.

Typical triggers for these landlords to offload stock include increased mortgage rates on one or more units, unexpected repair costs, increasingly costly void periods, or hands-on management becoming too time-consuming.

Decisions tend to be pragmatic – often keeping one or two properties while selling those that are no longer performing. We expect this group to be one of our biggest landlord client groups next year.

Remote Landlords:

One of the fastest-growing seller groups is landlords who own properties far from where they live. Many bought out of area chasing higher returns at the time, but rising costs and stricter licensing schemes are now making long-distance management increasingly unattractive.

Notable factors here include higher management fees eating into yields and maintenance and repairs often being less efficient, with landlords having to use tradespeople they don’t know. Many now want to refocus closer to home or exit altogether.

We are seeing an increasing number of landlords making a straightforward decision to sell as soon as these properties become vacant.

Landlords Facing the 2026 Remortgage Squeeze.

This is currently one of the biggest drivers of sales. A high number of BTL mortgages taken out or renewed between 2021 and 2023 will mature in 2026, meaning landlords will face significantly higher mortgage rates, shrinking yields and potentially more cautious lending on certain property types.

For some landlords, the numbers will still work, but for many others they won’t – particularly lower-yield stock and properties that are “noisier” or more maintenance-heavy.

This “cliff point” is likely to push a significant number of landlords to sell, particularly those already borderline on profitability.

Into 2026

Taking these four groups together, it’s likely we’ll see a steady and predictable supply of landlord stock coming to the market. My view is that we will see more portfolio “shuffling” rather than a mass exodus, with more vacant rental stock coming to auction at realistic pricing from motivated sellers.

Crucially, new investors are still entering the market where the numbers make sense, which is helping to underpin demand for well-priced stock.

From the real-time visibility that auctions provide, I believe the situation will be driven more by timing and economics than by any narrative of panic selling.