Recent data from the Property118 Landlord Sentiment Survey for the first quarter of 2026 reveals that landlord intentions are increasingly serving as a leading indicator for the housing market’s future direction. With a significant majority of landlords signalling plans to reduce their portfolios, these insights provide an early warning of forthcoming market adjustments.
Landlord Intentions Signal Market Trends
The latest survey, which gathered responses from 2,380 landlords, highlights a clear shift in sentiment. Notably, 57% of landlords intend to reduce their property holdings, while only 6.8% plan to expand their portfolios. This marked change in landlord behaviour is significant because it precedes actual market movements, influencing supply, transaction volumes, and pricing.
Landlords’ decisions are pivotal in shaping the rental market and the wider housing landscape. Their collective intentions today are likely to determine market conditions tomorrow, making landlord sentiment a valuable early indicator.
From Sentiment to Market Reality
Market outcomes typically follow a period of reassessment by participants, during which sentiment shifts before transactions occur or prices adjust. The Property118 survey captures this crucial moment, reflecting landlords’ thoughts and plans before they translate into concrete actions. This forward-looking perspective offers an advantage over traditional data, which tends to be retrospective.
Why Landlords Are Central to Market Dynamics
Landlords hold a central role in the housing market, affecting rental supply, property availability, and the balance between rental and owner-occupied housing. The survey data indicates that many landlords operate at scale, with an average of 9.7 properties per respondent. This scale amplifies the impact of their decisions, meaning that shifts in landlord sentiment can trigger significant market responses.
A Forward-Looking Dataset
Traditional housing market data, such as completed transactions, price changes, and lending volumes, provides valuable insight but is inherently backward-looking. In contrast, sentiment data captures landlords’ intentions, expectations, and planned actions, offering a predictive view of future developments. The Q1 2026 survey thus serves as a tool to anticipate market changes before they become apparent in conventional statistics.
Implications for Market Interpretation
Viewing landlord sentiment as a leading indicator alters how the data should be understood. It is not merely a snapshot of current conditions but a signal of what may lie ahead. The rising inclination among landlords to sell, coupled with a limited appetite for expansion and a tendency to hold existing assets, suggests a market in the process of adjustment. While the timing of this adjustment may vary, the direction is becoming increasingly clear.
What this means for landlords
For landlords considering their own strategies—whether to sell, expand, or restructure portfolios—these insights underscore the importance of proactive planning. Engaging with expert advice to assess portfolio structure and forecast outcomes under various scenarios can be invaluable. Such discussions are particularly relevant for landlords with established portfolios and moderate borrowing who are reflecting on optimising their assets for the years ahead.
A Tool for Anticipating Change
The ongoing quarterly Property118 survey series has the potential to become a consistent benchmark for tracking shifts in landlord sentiment over time. This continuous monitoring allows landlords, agents, and market observers to anticipate changes earlier than traditional data would permit, enabling more informed decision-making.
Source: Based on reporting from Property118
TLA Training Academy
The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.
Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/
Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/
TLA update
The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/
Source: www.property118.com
TLA - The Landlord Association