Landlord Confidence Index Archive
About the Landlord Confidence Index
The Landlord Confidence Index (LCI) summarises in infographic form how the key influences and policies which impact on the supply side of the PRS feed through into market confidence and psychology.
The data is captured quarterly and builds into a unique barometer of landlord sentiment and concerns.
Landlord confidence is now at record lows, even below the levels recorded in the early days of Covid-19. The trigger here is the Renters (Reform) Bill published during Spring 2023. Note we present a new scale for landlord confidence, the methodology is the same, and the data is consistent with previous surveys. Whichever scale is used, landlords in England (in Wales confidence increased marginally) have very low levels of confidence.
Landlord confidence showed a modest improvement in the first quarter of 2023 in England. In Wales however confidence has continued to fall. Demand for rental property continues to be reported as high, but the proportion of landlords planning to sell continues to rise. Growing concerns about regulation change, coupled to macro-economic factors continue to drive landlord decision making. These negative factors outweigh tenant demand.
Landlord confidence has continued to fall. It is now back to levels seen at the outbreak of the Covid-19 pandemic. The proportion of landlords planning to sell property is now at record highs - whilst the proportion of landlords planning to buy is now at record lows. Yet demand remains high and landlords are turning property around quickly. Legislation in Wales and possible legislation in England is a key factor behind these confidence levels.
Quarter 3 is the quarter in which landlord confidence collapsed. This follows a two-quarter period in which confidence dipped from highs. Rising tenant demand has done little to raise landlord morale. Rising interest rates, rising inflation and rising concerns about forthcoming legislation are all combining. The result is a rising proportion of landlords selling properties, reducing supply.
Quarter 2 has seen a continuation in the confidence dip which began in the previous quarter. Perceived demand has moved to record levels. However the proportion of landlords looking to sell has risen for the third consecutive quarter. Increasing costs and regulation are all factors which are contributing to the decision to sell. In the last twelve months 54% of landlords froze rents. Twelve months ago, the equivalent statistic was 73%.