Landlord confidence has fallen sharply over 15 years even as financial performance holds up, according to research from Pegasus Insight. Just 23% of landlords feel confident about the prospects for their own letting business, compared with 63% in 2011.
Profitability tells a different story. Some 85% of landlords now report making a profit, up from 82%, while the proportion experiencing rental arrears has dropped from 50% to 28%. Average rental yields have stayed relatively steady at 6.4%, against 6.7% in 2011, so sentiment has not tracked results.
Older landlords with smaller portfolios
The findings also point to a changing landlord demographic, with implications for lenders’ product design and risk appetite. The average landlord is now 63, up from 56 in 2011, while average portfolio size has fallen from 11.8 properties to eight. The average number of buy-to-let mortgages has declined from 8.8 to 5.9, and the proportion of landlords owning their entire portfolios outright has risen from 25% to 43%.
Limited company ownership has become more widespread. Almost a quarter of landlords (24%) hold at least one property in a limited company, up from 17% in Q3 2020. Among landlords with incorporated properties, the average number held in a company has risen from 7.6 to 12.7, representing 75% of their portfolios compared with 57% six years ago.
Why landlord confidence has weakened
Landlords’ relationship with the sector has deteriorated markedly. Only 25% feel positive about being a landlord, down from 77% in 2011, and just 2% believe landlords are respected, compared with 7% previously. Almost nine in ten (89%) say being a landlord has become harder in recent years, up from 66%. Meanwhile, the proportion saying it allows them to earn a living has fallen from 62% to 48%, highlighting the distinction between reporting a profit and feeling that letting property provides a worthwhile livelihood.
Pegasus Insight directors Bethan Cooke and Mark Long presented the findings at the firm’s Landlord Trends Workshop at Rightmove’s central London offices. The NRLA’s Chris Norris gave a speech at the event, which brought together buy-to-let lenders subscribing to the Landlord Trends research and other industry representatives. They examined how 15 years of findings can inform lending strategies, product development and understanding of landlords’ changing needs.
The latest results draw on 585 online interviews with NRLA members, conducted between 20 September and 10 October 2026 and lasting around 25 minutes each. Landlord Trends is a quarterly research programme that Pegasus Insight delivers in partnership with the NRLA, covering landlords’ portfolios, borrowing, financial performance, confidence and investment intentions.
The comparisons stretch back to 2011, and the incorporation figures cover Q3 2020 to Q3 2026. Long and Cooke began researching the sector 20 years ago while working at BVC-BDRC and have continued that work since establishing Pegasus Insight in February 2023.
“The gap between performance and confidence becomes more understandable when you consider the cumulative effect of government policy,” said Bethan Cooke, director of Pegasus Insight. “Successive Conservative and Labour governments have left landlords feeling that their contribution is undervalued and wondering where the next additional cost or obligation will come from.
“George Osborne’s announcement in 2015 restricting mortgage interest tax relief marked a turning point. Since then, repeated changes to taxation and regulation have reinforced the feeling that the pressure only moves in one direction, with last week’s Budget adding to those concerns.
“A landlord can run a profitable business and still decide that further investment is no longer worth the uncertainty or effort. That is the risk these findings expose. With housing already in short supply, we need an environment in which responsible landlords feel confident about continuing to provide homes.”
“Landlords have demonstrated considerable resilience, adapting their businesses through years of change,” added Mark Long, managing director of Pegasus Insight (pictured). “Their fears about the future can obscure the commercial reasons for remaining in the market, particularly the continuing demand for the homes they provide.
“The changing landlord demographic raises important questions for lenders. They need to understand landlords’ longer-term plans, whether they are borrowing to invest, refinancing an established portfolio or preparing to reduce their involvement in the sector. Those different needs have implications for mortgage terms, age criteria and product flexibility.
“Alongside this, we expect professionalisation to continue, with experienced portfolio landlords playing an increasingly important role. Lenders will need to consider how their product design, underwriting and risk appetite accommodate both an ageing landlord population and the more complex requirements of professional businesses.
“Brokers can help landlords put their concerns into perspective, assess their options against their own circumstances and find suitable solutions. Understanding who is borrowing, why they need finance and what they intend to do next will be essential.
“Tracking these shifts over time helps lenders look beyond the prevailing mood and make decisions based on how landlords are actually behaving. Confidence is fragile, but there is a resilient business sector beneath it.”
