Landlords’ next move will define the direction of the rental market

The latest data does more than describe current sentiment, it points directly to what may happen next. According to the Property118 Landlord Sentiment Survey Q1 2026, the private rented sector is now at a point where landlord decisions will determine its future direction.

Based on 2,380 completed responses, 57% of landlords plan to reduce their portfolios, 6.8% intend to expand and a significant proportion are choosing to hold and reassess. You can review the full findings here.

The implication is clear: the next phase of the market will be shaped by what landlords choose to do next.

A sector driven by individual decisions

The private rented sector is not controlled by a single policy or institution. It is shaped by thousands of individual decisions made by landlords across the UK. Each decision to buy, sell, hold or exit contributes to the overall direction of the market.

The survey data provides a snapshot of those intentions at scale. When viewed collectively, those intentions form a clear directional signal.

A balance that is shifting

Markets are shaped by balance. When buying and selling activity are broadly aligned, the market tends to remain stable. When that balance shifts, the direction of travel changes, and the current data suggests that this balance has moved decisively. With significantly more landlords planning to reduce portfolios than expand, the sector is likely to experience a gradual shift in structure and activity.

Multiple paths from the same starting point

Not all landlords will respond in the same way. Some will continue to invest selectively, others will hold their positions and a growing number may choose to exit. This creates multiple potential pathways for the sector. The outcome will depend on how these different responses evolve over time.

This is why the Q1 2026 survey is significant, it provides an early indication of how those pathways may develop.

Timing will play a key role

Intentions do not always translate immediately into action. As highlighted in the wider dataset, many landlords are delaying decisions, choosing to wait for greater clarity before acting. This means that changes in the market may unfold gradually rather than all at once. However, delayed decisions can still shape outcomes. Over time, as those decisions are implemented, their cumulative effect becomes visible.

A defining period ahead

The private rented sector is entering a period where direction is not being dictated from the outside, but determined from within.

Landlords are reassessing their strategies, evaluating their options and deciding how they wish to engage with the market going forward.

For now, one conclusion stands out: the future of the rental market will be shaped not by policy alone, but by the collective decisions landlords make from this point onwards.

A conversation worth having?

If you are weighing up your own strategy, whether that’s to sell, expand, or restructure to improve profitibility, it is worth having a discussion with a Property118 consultant to take a closer look at how your portfolio is structured as a whole now, and to forecast the outcomes based on multiple scenario’s.

These conversations are typically most useful for landlords with established portfolios and relatively modest borrowing who are beginning to reflect on how their assets could work more effectively in the years ahead.