A recent survey conducted by specialist mortgage lender Landbay has shed light on landlord sentiment across the UK. The findings reveal that while a majority of landlords plan to hold on to their properties, a significant number are considering reducing their portfolios in the near future.
According to the research, 58% of landlords said they had no plans to sell any properties this year. This suggests that more than half of landlords are willing to weather the current economic and regulatory pressures, signalling resilience in a sector that has faced a challenging few years.
The survey highlighted that landlords with smaller holdings were the most likely to remain fully invested. Nearly a third of non-portfolio landlords – those who own fewer than four mortgaged properties – said they would not be selling. For many of these landlords, their properties often act as long-term investments or additional income streams, making them more inclined to ride out market changes.
Those with mid-sized portfolios also expressed confidence. Around 24% of landlords with between four and ten rental properties said they had no intention of selling. These landlords, often semi-professional investors, typically balance risk with the need for stable rental income and are therefore maintaining their positions despite uncertainty.
However, the survey also found that not all landlords share the same outlook. Among those who are likely to sell, about 15% plan to dispose of up to 10% of their properties. This suggests that while many are staying invested, some are taking steps to reduce exposure and safeguard their finances.
A smaller proportion reported much more drastic intentions. Fewer than one in ten landlords said they could sell up to half of their property portfolio. For these investors, the pressures of new regulation, higher costs, and potential tax changes appear to be weighing heavily on their decisions.
When asked about their motivations, landlords pointed to regulation as the biggest driver of potential sales. More than a third of respondents considering selling said the incoming Renters Rights Bill was their main concern. This legislation, designed to give tenants more protections, has created uncertainty and worry among landlords about how it will affect their ability to manage properties effectively.
Taxation was the second most common reason for wanting to sell, chosen by 31% of landlords. While still a major factor, this number has dropped significantly compared to last year, when over half of landlords – more than 51% – identified taxes as their biggest challenge. This shift suggests that while taxes remain a concern, new regulations have now become a more pressing issue for many.
It is worth noting that the research was conducted in May, though Landbay only recently released the figures. Since then, speculation has emerged that the Treasury may be preparing to introduce National Insurance contributions on rental income in the Autumn Budget. If this comes to pass, it could add another layer of financial pressure on landlords already balancing costs and responsibilities.
Despite these challenges, some within the industry see reasons to remain optimistic. Rob Stanton, Landbay’s sales and distribution director, described the fact that 58% of landlords remain fully committed to the sector as “hugely encouraging.” This figure shows that more than half of landlords are continuing to invest and provide much-needed rental homes, even in a difficult climate.
Stanton also acknowledged, however, that a significant number of landlords are reconsidering their positions. For him, this underlines the importance of providing landlords with confidence and support so that they can continue to contribute to the housing market rather than exit it.
He stressed that lenders like Landbay play an important role in this support. By offering competitive mortgage rates, expanding product transfer services, and providing a wide range of lending options, Stanton believes landlords of all sizes can be encouraged not only to stay but also to grow their portfolios when the time is right.
The survey findings serve as a reminder of how divided landlord sentiment currently is. While some remain confident and committed to the market, others are being forced to weigh up whether the risks and costs still make property investment worthwhile.
For policymakers, the results highlight a potential challenge. If too many landlords scale back or sell up, the supply of rental properties could shrink further, putting additional pressure on tenants who are already facing high rents and limited options.
Overall, Landbay’s survey paints a picture of a market in flux. While confidence remains strong among a majority of landlords, concerns around regulation and taxation are driving others towards possible sales. The coming months, particularly the outcome of the Autumn Budget, may play a decisive role in shaping the direction landlords ultimately take.
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