According to the latest quarterly research from BVA BDRC, only landlords in the East of England, Yorkshire and Humber, and London added properties.
In all other areas, sellers either outweighed or were equal to buyers.
Landlords renting properties to tenants in the East Midlands were the most optimistic about the future prospects for their business, the research found.
Half of landlords in the East Midlands said they felt good or very good about their expectations for rental yields over the next three months. Meanwhile one in three reported being optimistic they would achieve capital gains.
Landlords pulling back
Landlords in Wales, however, were less positive. Fewer than one in three felt good about the outlook for rental yields and less than one in seven saw the potential for capital gains.
In the North East, landlords were least likely to rate the outlook for capital gains positively.
Landlords in the East Midlands, together with those in Yorkshire and Humber, also achieved the highest reported rental yield at 6.1 per cent, compared with an average for landlords operating across all regions of 5.6 per cent.
John Heron, managing director of mortgages at Paragon, said: “Despite the positive picture in some regions, it’s clear landlords are feeling bruised.
“All the available data shows that tax changes have driven landlords to pull back from the market and encouraged a sharper focus on yields. This has reduced the stock available to rent and we are now seeing inflationary pressures building in many regions.
“The upshot is that tenants are having a harder time finding a good quality home in the sector and having to pay more for it.”