Landlord confidence: why undecided landlords matter for rental supply

Why undecided landlords matter for rental supply

Most landlords still expect to remain in the private rented sector. But NRLA survey data points to the existence of a landlord group who consistently respond, “not yet sure.” Their decisions could matter as much for future rental supply as those who have already chosen to leave.

Across recent waves of the Landlord Eye survey, around one in five landlords have consistently selected the middle point when asked how likely they are to still be a landlord by the end of 2027. These landlords are not planning to leave, but nor are they committed to staying.

Debate tends to focus on landlords who have already decided to sell. But those still weighing up their future represent a group whose decisions are yet to be made – and who may still be open to influence.

The data suggests that cost pressures feature more prominently among undecided landlords than among those who have already decided to leave - suggesting this group is not simply a passive middle ground, but one actively weighing whether remaining in the sector is viable.

Who are the undecided landlords?

The undecided group has remained a consistent feature across recent survey waves suggesting it is not a one-off feature of the data, but a recurring part of the landlord population.

This group is not evenly distributed across the landlord population. Analysis of the Q1 Landlord Eye survey shows that landlords are more likely to sit in this undecided category if they:

• Let a single property (23%, compared with 16% of landlords with multiple properties).
• Did not hold buy-to-let finance (20%, compared with 14% of those with BTL finance).
• Reported lower confidence than in the previous quarter (21%, compared with 9% of those reporting higher confidence).
• Let family homes (20%).

No single profile emerges, but the pattern is consistent with uncertainty being more common among landlords with less scale or fewer financial buffers.

Costs weigh heaviest on those still deciding

Turning to the undecided group specifically, costs were more prominent than among landlords overall. Among undecided landlords, costs were mentioned in 46% of comments, compared with 39% across all respondents.

This was also higher than among landlords who said they were extremely unlikely to remain in the sector, where 29% mentioned costs. This suggests cost pressures are not simply the concern of those who have already decided to leave. They appear especially prominent among landlords still working out whether staying in the sector remains viable.

The pattern becomes sharper when looking at a narrower subgroup of undecided landlords. Among those who let one property, had no buy-to-let finance and reported falling confidence, costs were mentioned in 50% of comments.

Looking beyond the undecided group, the wider confidence data reinforces the link between financial pressure and landlord confidence. As figure 1 shows, just 13% of landlords who were much more confident than in the previous quarter mentioned costs, compared with 52% of those who were much less confident.
 

Figure 1: Costs mentions increase as confidence decreases

Tenants are also part of the calculation

When undecided landlords discussed the possibility of selling or leaving the sector, tenants were also central to the conversation.

Among undecided landlords who also mentioned exit intentions, tenants generated more discussion than any other theme - appearing in 53% of those comments. Within this sub-group, tenants outranked both costs and the Renters’ Rights Act, which each appeared in 35% of comments. Other themes in this group included:

• delaying exit to avoid tenant displacement
• the possession process
• landlord-tenant relationships.

This suggests that for some landlords, the decision to stay or leave involves not only a financial or regulatory calculation, but genuine practical concerns about tenants - particularly as major reforms are implemented.

How landlords are perceived

Undecided landlords were also more likely to mention how landlords are perceived and treated by government, the media and the wider public. This theme appeared in 26% of comments from the undecided group, compared with 18% of all landlords and 14% of those firmly planning to remain.

Whether this reflects a cause or a consequence of uncertainty is difficult to determine from the data alone. But the association is consistent enough to suggest that, for some landlords, the wider climate around how the sector is portrayed may form part of the context in which they are weighing their future.

The same pattern appears in the confidence data: landlords who were much less confident were also more likely to talk about how landlords are perceived and portrayed. For those already questioning whether to stay, a sense of being undervalued may compound the pressure of rising costs and regulatory change.

What this means for the sector

The undecided group matters because these landlords have not made a final decision. That means policy choices, communication and implementation still have the potential to influence their thinking.

If policymakers want to reduce the risk of further pressure on rental supply, they need to focus not only on landlords who have already decided to sell or leave the market altogether. The landlords still weighing up whether to remain are, in some respects, the more important audience.

That means ensuring reforms are workable in practice, providing clarity over future requirements, avoiding unnecessary cost shocks, and recognising the role responsible landlords play in meeting housing need. It also means allowing recently enacted reforms time to bed in before introducing further change.

The future of rental supply will not only be shaped by those who have already decided to exit. It will also be shaped by those still deciding whether the sector remains viable, manageable, and worth investing in. For policymakers, this is the group that may still be open to influence.