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The London picture is particularly stark. Surveyed by SpareRoom at the height of the Renters’ Rights Bill debate, 42% of London landlords said they planned to exit the market in 2025. The primary driver was the upcoming legislation — cited by 88% of all landlords surveyed as their top concern, ahead of profitability (70%) and even the end of Section 21 specifically (75%).
“More landlords are exiting the market and moving into
short-term lets due to the raft of legislative changes they
have to face.”— Propertymark / Capital Economics analysis
The London picture is particularly stark. Surveyed by SpareRoom at the height of the Renters’ Rights Bill debate, 42% of London landlords said they planned to exit the market in 2025. The primary driver was the upcoming legislation — cited by 88% of all landlords surveyed as their top concern, ahead of profitability (70%) and even the end of Section 21 specifically (75%).
“More landlords are exiting the market and moving into short-term lets due to the raft of legislative changes they have to face.”
— Propertymark / Capital Economics analysis
But many didn’t sell. They switched. According to Propertymark’s research with Capital Economics, one in ten landlords said they were likely to consider a switch to short-term lets. Of the overall landlord population, approximately 2.7% have already made the move from long-term tenants to short-term lets — equating to an estimated 46,000 properties that have shifted model. In London alone, Airbnb active listings rose from 18,000 in 2015 to 77,000 by 2019, and that trend has only accelerated in the legislative environment since.
The income logic is compelling. Professionally managed short-term lets in London typically generate 1.6–2× the net income of a comparable AST after all deductions. For landlords already facing margin compression from rising mortgage costs, the differential has become too large to ignore. The question has shifted from “should I consider it?” to “what’s actually involved, and is my property suitable?”
What this data doesn’t capture is the number of landlords who have switched to commercial lease arrangements with professional management companies — a model that doesn’t appear in Airbnb listings but is growing rapidly as landlords seek the income benefits of short-let without the operational burden. This “silent pivot” is particularly prevalent among portfolio landlords and those in Zone 1–3 London properties where the income differential is greatest.
The supply consequence: Every landlord who exits the PRS — whether selling up or switching model — reduces the supply of long-term rental housing. Rightmove’s 2025 data showed 17 households competing for each advertised rental property. The landlord exodus is making the housing crisis significantly worse for tenants, even as it creates legitimate alternative strategies for property owners.
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