Landlord confidence plummets amid soaring costs and new legislation

A combination of costs, legislation and a lack of confidence are driving a huge amount of landlords away from the private rented sector, claims a new report.

Propertymark’s latest Housing Insight report raises serious concerns about the housing crisis and its impact, not just on landlords and tenants, but also on those trying to enter the housing market.

With demand continuing to outstrip supply, the average number of applicants per available property has risen to seven per branch.

Driving large number of landlords away

A Propertymark member from the East Midlands told the report: “In my 30+ years’ experience I have not known landlords to be so hesitant about their future within the private rented sector.

“Escalating costs, tax, legislation, and a lack of confidence that things are going to get any easier are driving large numbers of landlords away.”

Phil Spencer, founder of Move IQ, warns without investment in the private rented sector, the housing crisis will only continue to get worse.

He told the report: “We know that in general, across the UK as a whole, demand is far outstripping the supply of homes within the private rented market, and to ultimately make renting more affordable in the long term, governments need to encourage and support investment rather than overstretch landlords beyond their ability to operate moving forward.

In my view, the current situation presents a serious and urgent challenge for society at large, influencing the decisions and options available to individuals across the board. It’s not just tenants or landlords who are affected, the consequences are already being felt by both current homeowners and those hoping to enter the property market.

“As it stands, the state housing system is struggling to keep up, and without meaningful change, the crisis will only deepen.”

The report also shows rents continue to rise, with 31% of Propertymark agents reporting rent increases, and 28% of adults saying they find it somewhat or very difficult to afford rent or mortgage payments.

Slowing in the pace of the market

Elsewhere in the report, the sales market took a dip compared to recent months.

The average number of new prospective buyers per member branch dropped to 87 in April 2025, likely a knock-on effect of the revised Stamp Duty thresholds introduced that month.

From April, the exemption threshold for first-time buyers in England fell from £425,000 to £300,000, while the standard threshold dropped from £250,000 to £125,000.

Despite the dip in buyer activity, Nathan Emerson, chief executive of Propertymark, said the housing market remains strong.

He said: “As the new Stamp Duty thresholds were introduced from April across England and Northern Ireland, it’s inevitable that a slowing in the pace of the market was to be noted.

“However, other factors such as improved mortgage deals from lenders, an ongoing steady stream in the number of mortgage approvals and borrowing, as well as continued appetite and confidence from home movers, are all hugely positive signs that the housing market remains resilient amongst economic uncertainty.”