A recent survey indicates that nearly half of landlords experiencing significant losses are planning to exit the rented sector. The Q3 2026 Landlord Sentiment Survey, conducted by Property118 between 1 and 8 October 2026, found that 47.6% of landlords with more than half of their portfolio making a loss after all costs and tax intend to leave completely within three years.
This figure contrasts with 19.8% of landlords with no loss-making property who plan a full exit. The survey highlights that losses are the clearest factor distinguishing landlords who plan to stay from those who intend to leave.
While mortgage-free landlords appear more likely to exit, with 30.0% planning to leave compared to 21.7% of those with mortgages, this trend is attributed to their typically smaller and older portfolios. For many, selling one or two properties as they retire constitutes exiting the sector.
Losses tend to increase with higher levels of borrowing. However, even among mortgage-free landlords, 12.5% report at least part of their portfolio making a loss, indicating that factors such as repairs, compliance, licensing, and tax can lead to properties being unprofitable without any debt.