Landlord Eye #03 - Landlord confidence and sentiment special

Introduction

The third edition of Landlord Eye focuses exclusively on landlord confidence, taking a different approach from the usual quarterly survey format. Instead of covering confidence alongside a wider set of topics, this edition asked landlords operating in England and Wales three core questions about how confident they feel about the private rented sector (PRS) and their own business over the coming year:

1. Are you more or less confident about achieving your goals as a landlord over the next twelve months compared with last quarter?
2. How likely is it that you will still be a landlord at the end of 2026?
3. What factors are driving your confidence or lack of confidence at present?

Between 3 – 20 August 2025, nearly 1,800 landlords took part, offering a detailed picture of landlord mood and outlook at a pivotal moment for the PRS.

Landlord Confidence Index

The NRLA's Landlord Confidence Index (LCI) rose to 34.7 in England and Wales - the fourth consecutive quarter in which confidence has edged up, and well up from the post-General Election low of 24.5 recorded in the same quarter last year.

Despite the rebound, optimism has not fully returned. Since the Renters’ Reform Bill was announced in 2022 - now the Renters’ Rights Act - the LCI has exceeded 40 only once. For many landlords, facing a wave of regulation, rising costs and ongoing uncertainty, confidence remains muted.

However, despite the overall gloomy outlook, there are pockets of optimism:

• Confidence in Wales has been higher than England for more than a year.
• A record four in five landlords say they will expect to remain landlords by the end of 2026 - up from 60% in the previous quarter. 
• A portion of more confident landlords continue to cite strong relationships with tenants, high demand and viewing property as a long term investment.

Landlord sentiment

For landlords, sentiment continues to drift downwards. The overall sentiment score for all comments fell from 41 in Landlord Eye #01 to 39 in #02. This quarter it has fallen again - to 38. These falls reflect a sector still under pressure from reform, compliance costs and uncertainty.

Rental reform continues to dominate

The Renters' Rights Bill, now the Renters' Rights Act, was the most discussed topic among landlords - the third consecutive quarter in which it has topped open-ended responses. 

Government policy was the second most common theme, followed by compliance. While mentions of EPCs, MEES and energy efficiency have risen since the start of the year, it is uncertainty around rental reform that continues to dominate landlord discussions. 

LCI vs sentiment

Analysis of landlord comments reveals how different groups of landlords are affected by economic pressures, regulation, and the practical realities of property management. Comparing responses from those who feel more confident and those who feel less confident exposes two distinct outlooks on the PRS.

Same pressures, different outlooks...

Those who feel more confident tend to focus on long-term investment, stable tenant relationships, and pragmatic adaptation to change.

Less confident landlords, on the other hand, are more preoccupied with reform fatigue, rising costs, and policy uncertainty.

Across both groups, the Renters’ Rights Bill, compliance costs, and tenant management remain defining concerns – but the tone differs sharply between optimism and resignation.

• More confident landlords associate confidence with stability, adaptability, and positive tenant experiences.
• Less confident landlords are twice as likely to mention the Renters’ Rights Bill and government reforms as key sources of frustration.

This divergence shows how the same pressures - from energy efficiency rules to rental reform - are shaping two distinct mindsets within the PRS.