Just 23 percent of landlords feel confident about the future of their letting business, down from 63 percent in 2011, according to fresh analysis from Pegasus Insight.
The figures were presented at the research firm’s Landlord Trends Workshop at Rightmove’s London offices this week, comparing current sentiment with its 2011 baseline. The 15-year review draws on the firm’s long-running landlord tracking work with lenders and intermediaries.
The contrast sits at the heart of the story for investors. Day-to-day trading looks sound, with most landlords still in profit and arrears well down on 2011 levels, yet belief in the sector has collapsed as tax and regulatory costs have stacked up ahead of further rental reform.
Profits hold steady as arrears fall
Some 85 percent of landlords report making a profit, slightly up from 82 percent fifteen years ago. The share facing rental arrears has dropped from 50 percent to 28 percent, while average rental yields have eased only slightly from 6.7 percent to 6.4 percent.
Other sentiment measures show the same split. Only a quarter of landlords now feel positive about being a landlord, against 77 percent in 2011. Fewer than half, 48 percent, say letting provides them with a living, down from 62 percent, and just 2 percent feel landlords command respect.
Close to nine in ten, 89 percent, believe letting property has become harder in recent years, up from 66 percent. This follows Landlord Knowledge’s report on Pegasus arrears data in September, which found late payment at a record low but warned that smaller portfolios were under more strain. The latest figures suggest that pattern is hardening into a wider confidence gap.
Landlords older with fewer mortgages
The research points to a markedly older landlord base. The average landlord is now 63, against 56 in 2011, while average portfolio size has fallen from 11.8 properties to eight and the typical number of buy-to-let mortgages has dropped from 8.8 to 5.9.
Some 43 percent now own their whole portfolios outright, up from 25 percent in 2011. At the same time, use of limited companies keeps rising, with almost a quarter holding at least one property in a company, up from 17 percent in 2020. Among those users, the average number of incorporated properties has grown from 7.6 to 12.7.
Tax pressure after the Section 24 interest restriction and the replacement of wear-and-tear allowances helps explain the shift, with many established owners paying down debt or moving stock into companies rather than adding mortgaged purchases. Separate Landbay polling on Budget tax fears found four in five landlords braced for further tax rises, which underlines why even debt-free owners remain cautious.
Policy blamed as lenders urged to adapt
Bethan Cooke, director at Pegasus Insight, said cumulative policy moves had left landlords feeling undervalued. “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,” she said.
Cooke named the 2015 restriction of mortgage interest relief as a turning point. “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,” she said.
Mark Long, managing director at Pegasus Insight, said lenders would need to rethink age limits, terms and underwriting for an older, less leveraged customer base. “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,” he said. “Confidence is fragile, but there is a resilient business sector beneath it,” he added. Full background on the research firm is available via Pegasus Insight.
What this means for landlords
- If you own outright: review succession and exit timing now, as age profiles rise and relief rules favour companies over personal ownership for many larger holders.
- If you plan to borrow: check maximum age at term end and stress tests early, since fewer landlords carry large mortgage counts and criteria vary widely past 70.
- Watch for: Renters’ Rights Act costs, EPC upgrade bills and any Budget tax moves, which the research flags as the main drag on sentiment despite sound yields.
- Bottom line: trading numbers still support well-run lets, but confidence will stay weak until policy risk settles.
Editor’s view
Profit without confidence is a warning light, not a clean bill of health. When debt-free 60-somethings stop buying, supply pays the price. Ministers should read this as a retention problem first.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 05 November 2026
Sources: Pegasus Insight, Mortgage Strategy, Property Industry Eye
Related reading: Pegasus: arrears fall to record low but portfolios split
