Results of the Property118 Landlord Sentiment Survey (Q2 2026)
Summary: The second quarterly Property118 Landlord Sentiment Survey reveals a persistent trend of landlords selling more properties than buying, with growing pessimism about property value growth and a rising intention to exit the sector. Financial factors, particularly borrowing costs and tax considerations, remain the primary drivers influencing landlords’ decisions to sell or refrain from purchasing.
Survey Participation and Methodology
A total of 2,096 landlords completed the Q2 2026 Property118 Landlord Sentiment Survey. This marks the first time a like-for-like comparison with the previous quarter (Q1 2026) is possible, allowing insight into how landlord sentiment is shifting over time.
The survey refined several questions based on feedback, adding new options and adjusting time horizons. Where direct comparisons are possible, these are shown; otherwise, current figures are presented independently to avoid misleading trends. All data collected is anonymised to ensure confidentiality.
Portfolio Direction: Selling Still Outweighs Buying
Landlords were asked how their portfolios have changed over the past two years. The results are largely unchanged since Q1 2026:
- 53.8% report their portfolio size has remained roughly the same
- 40.2% have reduced their portfolios through sales
- Only 6% have expanded their portfolios
This stability indicates that more landlords are holding steady or selling rather than buying, with over six landlords holding or selling for every one expanding.
Outlook for Property Values
For the first time, landlords were asked about their expectations for property values over the next three years:
- 48.7% expect values to stagnate or fall below inflation
- 43.3% anticipate values will keep pace with inflation
- Only 8% foresee real-terms growth
More than nine in ten landlords do not expect property values to outpace inflation, signalling a significant loss of confidence in capital appreciation as a long-term investment driver.
Future Intentions: Increased Exit Plans
When asked about their likely actions over the next three years (an extended horizon from the previous quarter’s 12 months), the survey found:
- 67.7% expect to sell some properties or exit the sector entirely
- 9.5% plan to buy additional properties
- 27.1% intend to exit the sector completely
The imbalance between those planning to exit and those planning to expand has intensified since spring 2026.
Remortgaging: Rising Refinancing Pressure
The proportion of landlords expecting to remortgage within the next 12 months increased to 34.2%, up from 31.1% in Q1. With interest rates remaining significantly above pre-2022 levels, many landlords face higher repayment costs as fixed-rate deals mature, potentially increasing financial pressure and prompting further disposals.
Factors That Would Encourage Landlords to Buy
Landlords ranked incentives influencing their decision to purchase more rental property. The top factors remain consistent with Q1:
- Reversal of Section 24 mortgage interest tax relief restrictions
- Falling interest rates
- Repeal of the Renters’ Rights Act
- Lower Stamp Duty (ranked lowest)
The continued prominence of Section 24 highlights its significant impact on landlord investment appetite.
Preferred Ownership Structures for Purchases
Among landlords considering buying, 53.1% would use a limited company (SPV), up from Q1, while 29.2% would purchase in a personal name, continuing a gradual decline. Interest in Family Investment Companies rose slightly to 11.2%. This trend reflects landlords’ preference for incorporated, tax-efficient vehicles in response to Section 24 changes.
Triggers for Selling Properties
Landlords ranked six potential triggers for selling, with financial factors leading:
- Higher interest rates (weighted score 4.14)
- Desire to realise gains before Capital Gains Tax changes (4.13)
- Regulatory pressures such as the Renters’ Reform Act and new EPC rules (middle tier)
- Tenant changes and personal circumstances (lowest ranked)
Financial considerations dominate the decision to sell, with regulation playing a secondary role.
Number of Properties Owned
The typical landlord in the survey owns five properties, while the mean average is 11.8, skewed by a small number of very large portfolios (one reported owning 500 properties). This indicates a sector composed mainly of modest portfolios with a smaller group of large operators.
Profile of UK Landlords
Regional Distribution
Landlords often own properties in multiple regions. London (24.6%) and the South East (23.1%) remain the most common areas, far exceeding other regions. The North West and South West form a secondary tier, while Scotland, Wales, and Northern Ireland have lower representation, showing continued concentration in higher-value southern markets.
Ownership Structure of Existing Portfolios
Personal ownership remains dominant at 61.8%, with company ownership slowly rising to 14.9%. This contrasts with future purchase intentions, where over half plan to buy through companies, highlighting the slow pace of restructuring existing portfolios due to Capital Gains Tax implications.
Tenant Types
Working tenants make up the majority, housed by approximately three-quarters of landlords. Tenancies involving benefits or students remain a minority, confirming the private rented sector primarily serves people in employment.
Property Types
Standard residential properties dominate, with houses (70.3%) and flats (56.8%) most common. HMOs (13.1%) and commercial properties (8.5%) represent smaller, specialist segments, notable given the heavier regulatory requirements for HMOs.
Property Management
Self-management remains the most common approach at 39.1%, though it has slightly declined. Full management by agents increased to 26.1%, possibly reflecting landlords shifting responsibilities amid rising regulatory complexity. Nonetheless, most landlords still manage their properties themselves.
Mortgage Gearing
The sector remains conservatively financed: 29.3% of landlords have no mortgages, and about 40% are very lightly geared or mortgage-free. Only around 9% have loan-to-value ratios above 70%. There is a slight shift towards moderate gearing, but overall equity buffers remain substantial, helping to prevent a wave of forced sales despite higher interest rates.
Tax Residency
Most respondents (95.8%) are UK tax residents, indicating the survey primarily reflects domestic landlord sentiment with a small overseas minority.
Implications and Sector Context
The survey confirms a private rented sector largely owned by landlords with modest portfolios of standard residential properties, let mainly to working tenants, and managed personally. The sector is financially resilient but increasingly cautious.
Landlord pessimism about property value growth has deepened, with a growing intention to sell or exit. The key incentives to buy remain unchanged, with Section 24 tax treatment the primary barrier. The trend towards incorporation continues, although legacy portfolios remain largely personal due to Capital Gains Tax costs.
This is not a temporary downturn but a more permanent shift driven by financial pressures and tax policy as much as regulation. Without meaningful reform or a pause in policy changes, the supply of privately rented homes is likely to contract further, exacerbating housing pressures amid record social housing waiting lists and insufficient housebuilding.
Why Your Feedback Matters
The Property118 Landlord Sentiment Survey runs quarterly, with improvements between Q1 and Q2 driven by landlord feedback. Continued input helps refine future surveys,
TLA - The Landlord Association