Landlord confidence has plummeted in the UK private rented sector, with nearly half of respondents now planning to reduce their portfolios over the next three years. The latest survey from Property118 reveals that 44% of landlords intend to sell one or more properties within the same timeframe, compared to just 36% who expect to purchase additional units.
The survey highlights a worrying trend: rising interest rates, increased regulatory burdens, and soaring living costs are driving landlords towards selling up. A notable shift from previous sentiment is seen in the growing trend towards incorporation – 60% of those planning to expand their portfolios intend to do so through a limited company structure, up from 53% last quarter.
Some 45% of landlords who plan to remortgage expect to do so within the next year, consistent with Q1 figures. Meanwhile, property value expectations remain uncertain: 46% of respondents predict an increase over three years, while 30% anticipate a decline – a mixed outlook that underscores the instability in the market.
The average portfolio size among respondents remains stable at 2-3 properties, skewed by larger portfolios. Notably, regional distribution shows a concentration in the South East, followed closely by London and the North West.
Responding to the findings, the Ministry of Housing, Communities and Local Government reaffirmed its commitment to a fair private rented sector. However, opposition parties accused the Government of failing small landlords – leading to potential shortages of available rental properties for tenants nationwide.