The latest Property118 survey points to sustained pressure on rental supply, although its self-selected sample cannot represent every UK landlord
Almost two-thirds of landlords responding to a new industry survey expect to reduce their portfolios or leave the private rented sector during the next three years.
Property118’s Q3 2026 Landlord Sentiment Survey found that 40.4 per cent planned to sell one or more properties and 25.2 per cent intended to exit completely. Together, 65.6 per cent expected to sell or leave, compared with 67.7 per cent in the previous quarter.
The result suggests negative sentiment remains established among those who took part. It does not mean two-thirds of all UK landlords will sell or forecast how many rental homes will disappear. The 1,654 participants were self-selecting Property118 readers rather than a random sample of the wider sector.
Confidence has weakened further
Nearly three-quarters of respondents, 73.6 per cent, said they were not confident about the private rented sector’s prospects over the next three years. Only 10.9 per cent described themselves as confident, while 14.9 per cent were neutral. Because this question was introduced in Q3, it establishes a baseline rather than showing a quarterly change.
There was a clearer movement in expectations for property values. The proportion expecting values to stagnate or fall behind inflation during the next three years rose from 48.7 per cent in Q2 to 54.6 per cent. Among 474 landlords who answered the question in both quarters, the pessimistic share increased from 52.7 to 58.2 per cent, reducing the likelihood that the change was caused solely by a different mix of respondents.
Capital growth has traditionally formed part of the long-term case for buy-to-let investment. If more landlords expect property values to lag behind inflation while borrowing, tax and management costs remain high, some will reassess whether keeping every property is worthwhile.
Some landlords have already reduced their portfolios
The survey also asked about completed sales. Almost a third of respondents, 31.5 per cent, said they had sold at least one rental property during the previous 12 months. Over a two-year period, 37.1 per cent reported that their portfolio had become smaller through sales, while 6.5 per cent had expanded by buying.
Of the landlords who had sold, 35.3 per cent reported selling to a first-time buyer, 29.6 per cent to another private landlord and 28.8 per cent to another owner-occupier. Respondents could select more than one buyer type, so the percentages are not a direct count of properties and cannot establish precisely how many homes left the rental sector.
Even with that limitation, the findings show why sales between different types of buyer matter. A home sold to another landlord can remain available to tenants, while a sale to an owner-occupier will usually remove it from rental supply. For tenants in areas where demand already exceeds availability, repeated losses can mean greater competition and fewer suitable choices.
Tax interest rates and regulation shape decisions
When respondents ranked factors affecting sales, lower Capital Gains Tax and higher interest rates were joint leading concerns, followed by the Renters’ Rights Act and future energy-efficiency requirements. Separate questions also produced strong responses around income-tax changes, licensing, possession difficulties and landlords’ age or retirement plans.
This points to decisions being driven by several pressures rather than one reform. The survey’s own profile reinforces that caution: 81 per cent of respondents were aged 55 or over and 46 per cent were at least 65. More than half had been landlords for over 20 years. Retirement and succession are therefore likely to be significant alongside policy and financial considerations.
The sample also differs from the population captured by official research. The 2024 English Private Landlord Survey, using a random sample drawn from tenancy-deposit records, found that 31 per cent planned to reduce their portfolios within two years, including 16 per cent intending to sell everything. Different geography, respondents and time periods mean the figures are not directly comparable, but the gap shows why the new headline cannot be applied to every landlord.
Intentions will matter only if they become transactions
For landlords, the Q3 findings provide a useful indication of how an experienced and engaged section of the sector views the next three years. They do not determine whether an individual property remains viable. Local rents, demand, financing, condition, taxation and the owner’s plans will continue to produce different decisions.
For tenants, the risk is cumulative. If sales consistently transfer homes from landlords to owner-occupiers faster than new rental supply is created, choice can narrow even though the property remains part of the wider housing stock. A purchase by a first-time buyer helps home ownership, but it does not provide an immediate replacement for a household that still needs to rent.
The next test is whether reported intentions become completed sales and whether those homes remain available for rent. The Q3 survey cannot answer that national supply question alone, but it shows weak confidence and a persistent intention to contract among its respondents.
NetRent does not provide legal advice. This article represents our understanding of rental property law and is provided for general information only. Landlords should obtain independent legal or professional advice where appropriate.
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