Landlord Eye #04: Reform, safety standards and tax pressure
Introduction
Landlord Eye #04 presents the findings from the final NRLA quarterly consultation of 2025, capturing landlord confidence, sentiment and policy pressures at a moment of heightened uncertainty for the private rented sector (PRS). Following a brief recovery earlier in the year, landlord confidence fell sharply in quarter 4. This edition explores what drove that reversal - and how landlords are responding to mounting regulatory, fiscal and operational pressures.
Between 8 - 25th November 2025, more than 1,963 landlords operating in England and Wales shared their views, providing a detailed snapshot of landlord mood as the Renters’ Rights Act gained Royal Assent and speculation around the Autumn Budget intensified.
Confidence slumps after recent rises
After four consecutive quarters of rising confidence, the Landlord Confidence Index (LCI) dropped sharply in Q4. Overall confidence in England and Wales fell to 25.5, a decline of 9.5 points on the previous quarter and the second-lowest score on record.
Confidence fell across every region. Several areas - including London, the Northeast and the Southwest - recorded all-time lows. In Wales, confidence also declined markedly, registering its largest quarter-on-quarter fall since 2022.
While earlier quarters in 2025 suggested a fragile recovery, this edition shows that momentum has not held.
Sentiment continues its downward trajectory
Landlords’ comments reveal that overall sentiment fell again in Q4, dropping to 36, the lowest level recorded in 2025. Nearly six in ten comments carried negative sentiment, reflecting growing concern about the practical realities of operating in an increasingly complex regulatory environment.
Across the year, sentiment analysis shows a gradual shift away from optimism around demand and long-term investment towards greater caution, fatigue and a reassessment of future plans.
Exit intent resurfaces
Alongside falling confidence and sentiment, optimism about remaining in the sector weakened. The proportion of landlords expecting to remain landlords by the end of 2026 fell back after peaking in Q3.
Single-property landlords, in particular, show a higher likelihood of exit - a trend that raises concerns about further contraction at the smaller end of the PRS.
Safety regulations, Making Tax Digital and Leasehold and Freehold Reform
Alongside rental reform and tax pressures, the survey also highlights the growing complexity of meeting safety and compliance requirements. Findings point to practical challenges in areas such as damp and mould, electrical safety certification and navigating the Housing Health and Safety Rating System (HHSRS), where evidencing responsibility and securing contractors can present difficulties.
The report also examines landlord preparedness for upcoming regulatory changes. This includes Making Tax Digital, which will require many landlords to shift towards quarterly digital reporting, and leasehold and building safety reforms that continue to create uncertainty for landlords with affected properties.
Together, these findings demonstrate how landlords are responding not just to changes brought about by rental reform, but to a wider landscape of increasing regulatory expectations across the sector.
