Costs, confidence and changing rules

Landlord confidence remains close to a record low as costs, regulation and uncertainty continue to shape the outlook for the private rented sector.

Drawing on responses from 992 landlords, the latest Landlord Eye report explores confidence across England and Wales, early views of the Renters’ Rights Act, concerns about possible future Minimum Energy Efficiency Standards and experiences of local authority licensing.
Landlords were also asked what continues to make providing rented homes a worthwhile endeavour. 

Key stats at a glance:

What landlords told us about their confidence

The NRLA’s Landlord Confidence Index fell slightly in Q2 2026, declining by 1.5 points to 28.8. This is the third-lowest score recorded since the index began in 2019.

Landlords were invited to explain what was shaping their confidence in their own words. Their comments were grouped into themes and analysed for sentiment using the Wordnerds language-analysis platform. Because individual comments can mention several subjects, theme percentages may overlap.

Overall sentiment remained unchanged at 37 out of 100. However, positive comments fell to their lowest level since tracking began.

Costs remained the most frequently discussed issue, appearing in 40% of comments. Government policy was mentioned in 33%, while references to how landlords are portrayed by government, the media and wider stakeholders rose by eight percentage points to 26% - the highest level recorded for this theme.

Specific mentions of the Renters’ Rights Act fell by ten percentage points to 22%. This did not mean landlords’ concerns had disappeared: references to practical issues such as enforcement and bureaucracy continued to increase.

Landlords reflect on the early effects of rental reform

The consultation took place shortly after the initial provisions of the Renters’ Rights Act took effect on 1 May 2026.

Landlords’ comments covered different stages of the tenancy lifecycle, from selecting and managing tenants to resolving disputes and regaining possession. Positive experiences with existing tenants sat alongside greater concern about taking on new tenancies.

A recurring concern was whether the courts would have sufficient capacity to deal with possession cases promptly, particularly where rent arrears or antisocial behaviour affected landlords and other tenants.

The Act is also influencing some landlords’ decisions about their properties. More than a quarter - 26% - said they had sold or were currently selling property because of the Act, while a further 19% were considering selling.

Costs dominate concerns about future energy standards

When asked about possible future Minimum Energy Efficiency Standards, landlords focused primarily on the financial and practical implications.

Costs were mentioned by more than half of landlords. Within these cost-related comments, many referred to the challenge of bringing older, hard-to-insulate properties up to any new standard. Landlords questioned the feasibility of reaching the standard, as well as the cost-effectiveness and payback period of any investment in upgrades.

Awareness of available support was limited. Almost three in ten did not know that MEES exemptions existed, while 61% were not really or not at all aware of green-finance options for funding improvements.

Licensing creates substantial administrative demands

Almost four in ten landlords said they let at least one property covered by a local authority licensing scheme.

Among landlords affected by licensing, 76% reported that the process placed a great deal or fair amount of administrative burden on them. This included the time and effort involved in navigating the process, completing applications, providing information and meeting ongoing requirements.

Good tenants and a sense of purpose make landlording worthwhile

When asked what makes it worthwhile to continue providing rented homes, landlords’ answers centred most strongly on people and purpose.

Among the 839 landlords who responded, 37% mentioned tenants and 32% referred specifically to tenant relationships. Landlords described the value of good tenants, stable tenancies and knowing they were providing people with quality homes. Pride in providing housing received the highest sentiment score of any theme, followed by smooth or low-hassle tenancies.

Financial rewards remained important, particularly long-term investment, rental yields and sustained demand. However, 5% could not identify a positive reason to continue and 12% referred to plans to leave the sector - showing how growing pressures are beginning to outweigh the rewards for some.

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Each quarter, the NRLA asks members to share their views through one of two online consultations. Subscribers to NRLA research emails may receive either the Landlord Trends survey, run by our research partner Pegasus Insight, or our in-house Landlord Eye survey.