Landlord confidence continues to fall

NRLA Research Manager Nick Clay reports on the latest NRLA landlord confidence index, showing confidence is falling for many.

Each quarter the NRLA undertakes a quarterly consultation with members. The consultations collect landlord views on a range of topics from dealing with rising interest rates and inflation, to use of letting agents to managing and maintaining property. 

Each quarter landlords are asked to give their views on the rented sector, whether they are planning to expand their business or reduce their portfolio and are invited to share the reasons why they are doing so. 

Part of the information they provide enables the NRLA to produce the Landlord Confidence Index (LCI) – a snapshot of landlord sentiment. This quarter we have adjusted how this snapshot is reported (but the methodology has not changed). This adjustment has been made to make the LCI easier to understand and communicate. 

The change takes into account previous LCI scores and the pattern, nor the interpretation, has not changed. 

The chart shows landlords’ confidence is continuing to fall. It has fallen in five of the last six quarters, with the small increase recorded in the previous quarter now looking like a one-off. 

Note that for England and Wales as a whole – even though Wales has seen a small rise this quarter (but basically flat) – the confidence score of 31.3 is the lowest confidence level recorded since the index began. Confidence now is even lower than that seen during the first period of the Covid-19 pandemic. In Wales, confidence is even lower – a product of regulation change, and the threat of rent controls.

These low confidence levels are despite high levels of tenant demand and rising rent levels.

A complete analysis of the trend in landlord confidence can be found in the research section of the NRLA website.

A complete analysis of this quarter’s figures will be available shortly.