Accidental landlords drive limited growth as sector confidence stalls

Carter Jonas has reported a subdued mood among private landlords, with most opting not to invest in rental homes.

Its 2025 Private Landlords Report, based on a UK-wide survey of nearly 200 respondents, shows 80% of portfolio landlords do not expect to purchase another property in the near term.

More than one in three (37%) landlords point to regulatory complexity, while 20% point to stretched finances.

A further 11% plan to exit the private rented sector altogether by selling their entire holdings.

PRS progress is possible

The firm’s head of residential, Lisa Simon, said: “Landlords are cautious, but our findings show where progress is possible.

“Clear rules, proportionate standards and practical reliefs can unlock investment, particularly among ‘accidental landlords’ who are choosing to stay the course.”

She added: “Our survey records a cautious stance, yet the direction of travel is constructive.

“Since the Budget, clarity has improved, although outcomes depend on how policy is applied in practice.”

‘Accidental landlords’ are buying

The property consultancy also found that 14% of landlords say they intend to expand, and in that group, ‘accidental landlords’ make up the largest share at 42%.

The firm says clarity on government policies since the Autumn Budget is helping to steady landlord sentiment.

Indeed, the PRS could see cautious stabilisation into 2026.

When asked what would make buying more viable, respondents most often highlighted reductions to Capital Gains Tax, for 63%, and Stamp Duty Land Tax, for 51%.

What landlords want

Landlords would also like investment to be encouraged with tax relief for essential maintenance, selected by 61%.

However, almost two-thirds said a softer Minimum Energy Efficiency Standards requirement would not influence whether they purchased again.

The survey also found conditional support for the Renters’ Rights Act and most landlords view the introduction of a Private Sector Ombudsman positively.

They see it as a route to clearer, faster resolution for disputes.

Other proposals prompt more caution, with the abolition of Section 21 and the right for tenants to request a pet attracting a cooler response.

Property118 commercial reality check

Confidence has not disappeared. It has narrowed. Most landlords are not expanding because regulation, tax friction and cashflow uncertainty reward patience over impulse. That is not stagnation. It is capital discipline. A smaller cohort is still buying, led by accidental landlords who operate with lower leverage and simpler expectations. Noise dominates headlines. Balance sheets decide outcomes.

What serious landlords should do next

Model decisions over a three to five year horizon
Run numbers beyond the next Budget cycle. Stress test rent, interest and compliance costs at conservative assumptions to identify which assets still compound and which merely consume time.

Audit regulatory exposure early
Map each property against upcoming standards, licensing and dispute resolution processes. Preparation costs less than reaction and preserves optionality.

Use refinancing as a strategic tool
Structured refinancing can rebalance gearing, extend terms and protect working capital. Even a 0.5 percent shift in rate or term length materially alters portfolio resilience.

Treat selective disposals as balance sheet management
Some landlords are choosing to exit on their own terms. Others are trimming weaker stock to improve yield and reduce management drag. If you are considering selling, it is worth reviewing this guide on calculating Capital Gains Tax before making any decisions: https://www.property118.com/why-every-landlord-should-calculate-cgt-before-selling-a-single-property/

Separate operating income from reinvestment capital
Ringfence surplus cash for maintenance, energy upgrades or redeployment. Clarity here prevents forced decisions later.

Systemise disputes and tenant processes
The ombudsman framework rewards landlords who document, automate and standardise. Faster resolution protects time and reputation.

Advantage through professionalism

Markets pause. Professionals plan. The landlords who quantify risk, restructure deliberately and act early will still transact while others wait for certainty that never fully arrives. Discipline beats drama. Structure beats noise.