Landlords are fleeing the rental market: the number of Spanish property owners selling their homes to avoid non-payment by tenants is growing.

Spain’s housing market continues to show that the imbalance between supply and demand is not driven solely by economic factors, but increasingly by landlords’ distrust of the rental market. A recent Fotocasa study reveals that nearly one in four homeowners (23%) choose to sell their property to avoid problems related to rent collection. This represents an eight-point increase compared to last year, making it the third most common reason for choosing to sell rather than rent.

Another revealing trend is the rise in owners who fear that tenants may damage their homes, now the second most frequent concern. Although personal reasons remain the leading motivation (31%), the growing discomfort surrounding rental risks reflects a clear behavioural shift.

According to the “Buying and Selling Experience 2025” report, this dynamic is creating a “vicious circle”: fear reduces the number of properties available for rent, which in turn pushes prices even higher in an already strained market. With demand outpacing supply, rental prices continue to set new records.

The study highlights additional reasons as well. A quarter of sellers want to purchase another home, while 13% believe that fiscal incentives are not enough to offset the risks of having tenants. Only another 13% admit they sell because prices are rising, suggesting that market momentum is less decisive than fear of potential problems.

As Fotocasa’s research director, María Matos, explains, concerns about unpaid rent, property damage or even illegal occupation are strongly shaping landlord behaviour, reducing the availability of rental housing at one of the most critical moments for access to accommodation.

On the demand side, the motivations are equally telling. Homebuyers continue to view real estate as a strategic asset: 37% buy for long-term investment, 36% see housing as “a safeguard for the future”, 28% believe that renting is throwing money away, and 23% consider homeownership a way to build wealth.

The result is a market where both sellers and buyers are acting out of the same motivation: financial security. Some sell out of fear; others buy for protection. And this collision of behaviours continues to fuel the tension that defines Spain’s current housing landscape.