Landlord confidence is beginning to improve, with Foundation’s Landlord Trends Research for Q1 finding evidence of resilience in the PRS.
The research, conducted in partnership with Pegasus Insight and the National Residential Landlords Association (NRLA), shows 84% of landlords reporting their lettings activity being profitable.
At the same time, average rental yields edged up to 6.5%, while both portfolio values and rental income increased quarter-on-quarter.
The NRLA’s landlord confidence measure rose across all regions in Q1, while the proportion of landlords planning to remain in the sector increased to 63% (up from 58% in Q4 2025).
The research also gave a view on landlords’ planned activity.
Nearly four in 10 landlords with borrowing (39%) are planning to remortgage in the next year, while the average portfolio size has increased to 7.3 properties.
Additionally, 62% of those with lower-rated EPC properties plan to carry out works to meet future requirements, suggesting a willingness to invest in property stock and maintain long-term viability.
The research also highlighted the headwinds most troubling landlords right now.
Tenant demand, while still strong overall, has softened compared to previous peaks, and 43% of landlords report experiencing void periods, and 30% reporting rental arrears, over the last 12 months.
In addition, while investment intentions have edged up slightly (from 5% to 8%), 42% of landlords said they plan to sell at least one rental property in the next year.
“Portfolio sizes are increasing, more investors are taking a structured, long-term approach and there is clear evidence of landlords planning ahead, whether that is through refinancing activity or preparing for future EPC requirements,” said Grant Hendry, director of sales at Foundation.
“Softer tenant demand and rising voids show this is a more balanced market than in recent years, and some landlords will continue to reassess their position.
“However, the overall picture is one of a sector that is evolving rather than retreating.”
