Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.
Landlord Sentiment Survey Shows Growing Intent to Exit PRS
For the first time, the Property118 Landlord Sentiment Survey has provided a like-for-like comparison across two consecutive quarters. The survey, which gathered responses from over 2,000 landlords in both Q1 and Q2, found that while the sector’s fundamentals have remained steady, landlord sentiment has shifted towards a stronger intention to sell or exit the private rented sector (PRS).
Ownership structures among respondents showed little change, with around six in ten landlords still holding property in their personal names. Gearing levels also remained conservative: close to three in ten landlords have no mortgage, and roughly four in ten are either mortgage-free or have gearing below 30% loan-to-value. Only about 9% are geared above 70%.
The tenant mix was largely unchanged, with working tenants continuing to dominate. Self-management remains the most common approach, though a small increase in landlords using agents was noted. The survey data indicates a financially resilient sector, with substantial equity buffers and no evidence of widespread financial distress or rising arrears.
Despite this resilience, the survey found that pessimism about property values has deepened between Q1 and Q2, and more landlords now intend to sell or exit the sector. The survey highlights that this trend is not driven by financial distress, but by landlords making a considered decision to leave. The most significant incentive that could reverse this trend—a reversal of Section 24—remains unaddressed.
The survey respondents are predominantly UK tax residents with real portfolios, collectively representing tens of thousands of tenancies. Their consistent message over two quarters is a supply signal that the PRS is contracting by choice, not by force.
The report notes that government data has previously shown landlord-led tenancy endings were a minority before recent legislative changes, and that official impact assessments have acknowledged increased costs for landlords. The Property118 survey now adds independent evidence that the PRS is shrinking, raising concerns about the future supply of privately rented homes amid record social housing waiting lists and insufficient housebuilding.
The survey will continue to track landlord sentiment quarterly, as the sector awaits meaningful reform or a pause in regulatory changes.
Source: Property118