Why landlord sentiment may now matter more than policy announcements
Policy changes often dominate headlines, but their real impact depends on how landlords respond. According to the Property118 Landlord Sentiment Survey Q1 2026, landlord sentiment may now be a more immediate indicator of market direction than policy announcements alone. Based on 2,380 completed responses, 57% of landlords plan to reduce their portfolios, while only 6.8% intend to expand. You can review the full findings here.
The implication is clear: policy sets the framework, but sentiment drives behaviour.
From policy to response
Policy changes influence the environment in which landlords operate, but they do not determine outcomes directly. What matters is how landlords interpret and respond to those changes. The survey data captures those responses in real time. It reflects not just awareness of policy, but the decisions that follow. This is where sentiment becomes critical.
Behaviour reflects perception
Landlord behaviour is shaped by perception as much as by fact.
If landlords perceive the environment to be more complex, less predictable or less aligned with their long-term objectives, their behaviour will adjust accordingly. This may lead to reduced investment, increased selling or a shift towards holding.
The survey findings show that these adjustments are already underway.
Why sentiment leads
Traditional indicators such as transaction volumes or price movements are inherently backward-looking, but by the time changes appear in those metrics, the underlying decisions have already been made. Sentiment, by contrast, provides an earlier signal.
The Property118 dataset shows how landlords are thinking before those thoughts translate into action. This makes it a leading indicator.
A shift in focus
Understanding the importance of sentiment changes how the market should be analysed. Rather than focusing solely on policy announcements or retrospective data, greater attention can be given to how landlords are reacting in real time. This provides a more immediate and, in many cases, more accurate view of direction.
A more responsive measure of change
The data suggests that landlord sentiment is becoming a key measure of market movement. As the survey series continues, it has the potential to offer a consistent view of how sentiment evolves alongside policy and market conditions.
For now, one conclusion stands out: policy may define the rules, but landlord sentiment is increasingly determining how the game is played.
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.
Enquire about a free initial discussion with a Property118 consultant
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Member Since December 2023 - Comments: 6
10:40 AM, 26th April 2026, About 2 weeks ago
How a two-month let will help me as a small landlord? Any long Airbnb client will change to the new letting arrangements. Why? For the tenant it will be a fraction of the Airbnb price and offers more options
For the landlord it means that after Preparing the flat for a new tenancy, do repairs, paint it, cleaning. Pay the council Tax and bills for the period empty, etc, then it goes to finding the right tenant by start advertising for around £114 per ad. It is followed by a lot of responses from tenants that can ill afford the rent, pus the electricity, gas, water, Council Tax, TV licence, etc.
So, after responding many ads, and in some cases over 100 enquiries, needs to go to the selection for the viewing and it is important to have many viewings as most tenants do not meet the criteria, affordability, references, visa, etc.
After selecting the best tenant for the flat and if he has not changed his mind goes to the next stages, collect references, check all bills, draft the contract, arranged a time for signing after ensuring that it complies with the Visa requirement by filling the right form requirements by the department. You get a warning that you could be fined £7,000 or even £40.000 if you get it wrong although unlike the current Prime Minister whose wages comes directly from the Government office does not get even £5 for selling the Chagos Islands sinisterly or putting a paedophile as ambassador of the UK in Washington. I do not get any income from the government with my business, so I am not employed by the Home Office and contrary to Sir Keir, I must put £500.000 into my business!
After handing a mountain of papers to the tenants ranging from deposit security to the Right to Rent, contract, inventories, maps, plans, etc. inform the Council Tax and utilities of the new tenancy. Collect the rent, the deposit, show that everything is working and going with the formalities of safety, responsibilities, recycling, etc.
So finally I managed to get 1 month rent and one month deposit which will be all the new tenant will pay as his next move will be to instruct me that the rent for the second month comes from the deposit and not only will leave the flat in an awful condition but I may find my washing machine for sale in a second hand shop along with other furniture.
So, I will have to start repeating the work before the letting, re-painting, cleaning, replacing all the damaged of missing furniture, etc. and before is let another 2 months have gone by. So, I manged to let 2 months and to spend another 2 months to be let again!
I can do maximum 3 lets like that in a year for 3 months’ rent & £1,800 and an awful lot of expense and my work.
Who will benefit from this awful new law? Certainly not the 99% of good tenants. Like most of the abolition of section 21 it only rewards with the landlord’s money and expense that awful 1% of bad tenants while the other 99% indirectly have to pay for it or the landlord will go bankrupt and will be less accommodation available and far more homeless people.
Member Since March 2019 - Comments: 8
9:19 AM, 27th April 2026, About 2 weeks ago
Reply to the comment left by Jesus Diaz at 10:40
Very well laid out and correct summary of the current situation Diaz. I now only accept tenants who have a guarantor and I believe that within 3 years all landlords will do the same. Not having a guarantor leaves you too exposed to all of the things you have just mentioned.
The people it will hurt the most are all tenants (as rents are going to increase a lot to cover the risk and additional costs) and amateur landlords. I believe there will also be a lot of armchair landlords who use letting agents getting hurt because the letting agents just want fill the properties and will urge the landlords NOT to take a guarantor (As the agent just wants to rent fast). But once burned those landlords will leave and the remaining landlords will be the ones that insist on only taking tenants with guarantors.