More than 500 rental properties a day may be leaving the private rented sector, but one estate agent believes an inheritance boom could bring a new generation of landlords into buy-to-let.
TwentyEA estimates that 505 rental homes per day have left the sector so far in 2026. The property data firm has pointed to mounting tax, regulatory and cost pressures on landlords.
However, John Minnis Estate Agents argues that the transfer of wealth between generations could provide thousands of prospective investors with the capital needed to enter the rental market.
The agency points to Resolution Foundation research showing that 2.1 million adults received an inheritance during 2018-20. That was up from 1.7 million in 2008-10.
Around 32% received at least £50,000, equivalent to roughly 670,000 people over the two-year period.
There is no evidence that these recipients will become landlords. However, the agency argues that even a small proportion investing in property could create a sizeable pool of new entrants.
Could inheritance replenish landlord numbers?
The argument comes against a backdrop of shrinking rental supply.
TwentyEA estimates that 111,696 homes left the PRS through landlord sales in 2024. That increased to around 181,000 in 2025.
It estimates that 834,800 properties have left the sector since the start of the decade.
Landlords also face further tax and regulatory changes over the coming years.
Against that backdrop, John Minnis Estate Agents believes inherited wealth could become an increasingly important source of investment capital.
HMRC research cited by the agency suggests that becoming a landlord is not always the result of deliberately buying a rental investment.
Some 40% of landlords either originally bought their property to live in or acquired it through inheritance or a gift. The remaining 60% bought specifically as an investment.
John Minnis, founder of John Minnis Estate Agents, said: “We’re entering a period where property wealth accumulated over decades is going to move between generations on a much greater scale.
“For someone who already owns their own home, receiving £50,000, £100,000 or more can create a completely different set of financial choices.
“They might reduce their mortgage, invest in stocks and shares, keep the money in savings or spend some of it. But purchasing a rental property could also enter the conversation.”
Thousands of potential new landlords?
The agency has modelled what could happen if a small proportion of inheritance recipients invested in rental property.
If 1% of the roughly 670,000 people receiving at least £50,000 bought a rental property, that would equate to around 6,700 investors.
At 5%, the figure would rise to approximately 33,500. At 10%, it would reach around 67,000.
The figures are illustrative scenarios rather than forecasts. They also do not demonstrate that inheritance recipients intend to invest in property.
However, Minnis believes relatively small numbers could still make a difference.
He said: “The really interesting point is that we don’t need a huge proportion of inheritance recipients to become landlords for this to have an impact on the rental market.
“If even a relatively small percentage of people receiving substantial inheritances decide to put some of that capital into rental property, you could see thousands of new investors entering the market over time.”
Resolution Foundation figures cited by the agency show that larger inheritances have also become more common.
The proportion receiving at least £50,000 increased from 25% in 2008-10 to 32% in 2018-20.
John Minnis Estate Agents believes younger landlords could increasingly treat property as part of a wider investment portfolio. It also expects some investors to look beyond their local markets for opportunities.
However, the scale of any inheritance-driven influx remains uncertain.
Even tens of thousands of new landlords would need to be viewed against the number of rental properties currently leaving the sector. TwentyEA estimates the rate of departure at more than 500 homes a day.
