The pace of landlords offloading properties has begun to soften as the market enters a holding pattern before the Renters' Rights Act takes effect on 1 May.
Research from Goodlord, involving 1,200 landlords, found that 72% are neither selling nor purchasing buy to let properties.
The lettings platform also found that 24% are actively seeking to exit the market, which is a steep drop from September 2025's figure of 35%.
Landlord exodus is easing
The platform's director of landlord experience, Emily Popple, said: "These numbers provide initial indications that the pace of the so-called 'landlord exodus' has started to ease, with the majority of landlords appearing to be in a holding pattern.
"Many will be waiting to see what the real-world implications of the Renters' Rights Act are, once it comes into force on May 1."
However, the long-term stability of the private rented sector remains under pressure, with only 44% of current owners believing they will still be landlords by 2031.
Within this group, a portion expects to have reduced the size of their portfolios within five years.
A further 35% of respondents stated they do not believe they will be in the market at all by then, while 21% remain undecided regarding their future in the sector.
The cooling of the landlord exodus follows a drop in the number of former rented properties being put up for sale so far this year.
Fewer landlords leave
Ms Popple continued: "Whilst fewer landlords leaving the sector is definitely good news, the wider signals are still concerning.
"Far too many don't see a future for themselves in the PRS and there's only a very short window to try and turn the tide.
"Through the right policy decisions and support systems, the government has an opportunity to retain rather than lose the significant cohort of landlords who are on the fence about their future and considering selling up."
This shift coincides with a slowdown in rent inflation, which fell to 2% in February 2026 compared to 4% during the same period in 2025.
Despite the fall in those landlords wanting an immediate exit, only 4% are currently buying.
Propertymark echoes findings
The imbalance between supply and demand continues to impact the PRS, with Propertymark's latest Housing Insight report showing that tenant demand still outstrips available stock.
Registrations per member branch have risen to 87, resulting in an average of seven applicants competing for every available property.
The organisation's chief executive, Nathan Emerson, said: "Within the lettings market, demand continues to outstrip supply.
"Although stock levels have edged slightly upward, supply remains constrained, and this imbalance is likely to remain a key challenge for renters and agents alike throughout the year."
He added: "Overall, the data points to a market that is stabilising rather than surging."
Propertymark's report quotes one member as saying: "The Renters' Rights Act is making more single property landlords leave the market.
"Social housing is non-existent, and the local authority is insisting that tenants do not move until they receive the bailiff letter.
"All compounding the reasons why private rented sector landlords have no confidence in the government."
Student landlords wait and see
The managing director of Accommodation for Students, Simon Thompson, said: "Landlords appear to be largely pausing portfolio changes until the Renters' Rights Act takes effect.
"Although immediate departures have dropped since last autumn, long-term commitment to the sector appears increasingly fragile among many landlords."
He added: "Competition for rented homes is high as prospective tenants compete for every listing, which keeps the pressure up on available homes.
"Depending on how the Act impacts the PRS, it looks like landlords are weighing up their future involvement and keeping an eye on yields, the economy and mortgage rates."
