Wales: Costs and compliance pressures see confidence plummet

The NRLA’s latest Landlord Confidence Index shows a sharp drop in confidence among members.  

In Quarter 2, the index stood at 23.9 for Wales. This down 10pts compared to the previous quarter. This is the largest quarterly fall since the first Covid-19 shutdown at the start of 2020.  

Confidence among Wales landlords is now at a level below even that shutdown event. Some other key points about the quarter 2 figures: 

• This is the first time confidence in Wales has been below that of England-based landlords since 2023 Qtr4. 

• The “sudden fall” is in fact part of a longer-term trend - in the last two years (8qtrs) confidence in Wales has fallen five times.  

The NRLA asked participating landlords what factors were behind their current [lack of] confidence in the PRS. The number one landlord response came back as “landlord costs” – this being a combination of the costs of meeting regulations, as well as the increasing day-to-day costs of running a property business.  

As if to underline the above response, landlords identified “compliance” as a specific issue. It is clear from the responses landlords gave to the NRLA  

Closely following costs was “Government”. The direction of government policy (meaning both Cardiff and Westminster – Making Tax Digital was commonly cited) was the key reference here – the research was conducted following the 2026 Senedd elections.  

There is no doubt from longer term patterns – most notably in Wales itself – that confidence falls when change is imminent and then rises once landlords have got to grips with that change (or they leave the sector entirely).  The new administration in Wales certainly seems to have triggered a fresh wave of uncertainty, whatever actions may transpire.  

Finally, landlords’ low confidence is being triggered by the barrage of negative comments about their role in the housing market. The portrayal both in the media and amongst politicians of landlords is steadily rising up the list of topics landlords wish to discuss. 

The above shows how while confidence in England has fluctuated, there has been a sharp nosedive in Wales