Landlord confidence up: But what does it mean?

At a time of unprecedented change in the private rented sector, landlord confidence is increasing. Why? 

It’s been a rocky few years for our landlord confidence index. Positive sentiment grew as we moved out of the lows of lockdown – but inflation, interest rates and the reaction to the Truss Budget burst that balloon from 2022. And just when confidence was returning again, a snap general election brought further uncertainty in England as the now Renters’ Rights Act meandered through parliament. 

We saw confidence remain steadier in Wales, but both countries reflected the period of speculation ahead of the 2025 Budget when we polled our members before November’s announcement from the Chancellor. With the media suggesting the Government was considering significant changes to landlord taxation, confidence hit an all-time low. 

So why are we seeing confidence ticking up in 2026?

Landlords’ fears were not fully realised in the Budget. While a 2% levy was added to income tax from rent, months of speculation about applying National Insurance to rental income came to nought: potentially, it was too complex to consider, but we also warned it could negatively impact supply by incentivising disinvestment. 

Similarly Capital Gains Tax was untouched, and a ‘mansion tax’ was the sole change to property taxes, providing further certainty to investors. 

Certainty for the sector

Since our last survey, the UK Government has also provided more certainty about the Renters’ Rights Act. In quarter one this year, it confirmed the details of what needs to be included in new tenancy agreements, the information sheet for existing tenants and other details needed for implementation.

The Government also provided some concessions, including a decision to allow student landlords to provide two-months’ notice using Ground 4A for this year only, recognising the impact of the implementation timetable on the sector. 

In short, while there remain uncertainties, particularly around energy efficiency, there is more solid ground for you to make investment decisions from. 

We know from our engagement with you in our webinars, at our Connect events, and through our Landlord Support team, that landlords are keen to understand the new regulations and are ready to comply from 1st May.

The details may have been slower in coming than we wanted, but the data suggests our members’ active preparation is paying off – and confidence is returning. 

We will be keeping a close eye on your feedback as the Act comes into force – and will be holding the Government to account on areas of ongoing concern, such as the performance of the county courts, the capacity of rent tribunals and the impact on the student sector. 

More information

The Landlord Confidence Index can be accessed here.

For more information on the Renters' Rights Act visit our dedicated member hub here.

For the latest on minimum energy efficiency plans click here.