WIREDGOV

Almost six in ten landlords report strong demand for homes to rent as the NRLA warns ministers against policies undermining confidence in the sector.

A poll of National Residential Landlords Association (NRLA) members, conducted by the research consultancy Pegasus Insight, has found that 58 per cent of landlords report demand to be either “very” or “quite” strong.

Demand was highest in Wales and the North East where 74 per cent of landlords reported strong demand, with the lowest levels of demand reported in the South East and West Midlands (cited by 51 per cent of landlords).

The findings come as analysis by the Resolution Foundation has warned that a combination of large social housing waiting lists, alongside affordability challenges for those wanting to become homeowners, means demand for rented housing will remain buoyant.

Despite this ongoing need for homes to rent, the research points to continued concern about landlord confidence. Three times more landlords say they have sold property than purchased property over the past year.

In total a fifth (21 per cent) said they had sold property, compared with just seven per cent who reported purchasing properties over the period covered by the research.

The Government is preparing to increase income tax on rental income from next year, despite the Housing Minister acknowledging that previous tax hikes have been a key factor driving the sale of homes to rent.

Responding to the findings, Ben Beadle, Chief Executive of the National Residential Landlords Association, said:

“Despite some data showing rental housing supply increasing, the reality is that it is still not enough to meet tenant demand.

“Long waits for social housing coupled with the high cost of homeownership means the private rented sector will remain crucial for many people trying to find a place to live.

“Against this backdrop, it makes no sense for the Government to increase taxes on rental housing when renters already face limited choice in many parts of the country.

“Ministers should be focused on encouraging responsible landlords to stay in the market and invest in good quality homes to rent. Anything that undermines confidence risks weakening supply, driving up rents and making it harder for those struggling most with cost-of-living pressures to find the homes they need.”

Notes:

• Pegasus Insight undertook 631 online interviews with current members of the National Residential Landlords Association between 9th March and 3rd April 2026.
• In its most recent Housing Outlook briefing, the Resolution Foundation has noted: “Although the size of the PRS has stabilised since 2015, it is hard to see a scenario where it falls back to the levels we saw in the early 2000s as rapidly as it grew. Despite policy changes over the last decade that have increased the tax burden on landlords, there are no signs that the stock of private rented homes is shrinking. In terms of demand, only a small minority of private renters are likely to move into sub-market housing: although in 2024-25 166,000 households in England moved into a subsidised unit from another tenure, and over the same period, the social housing waiting list increased by 10,000 to 1.34 million households. In a highly optimistic scenario, the Social and Affordable Homes programme coupled with private sector housebuilding could deliver an additional 84,000 affordable units in England a year. If all of those new units were allocated to people on the waiting list for the next decade, the list would still be half a million long.

“It seems more likely that any net outflow from the PRS will be among private renters moving into owner occupation. But with the median house price 7.6 times the median salary in England, and low levels of savings among potential first-time buyers, this will remain a challenge for those without access to familial wealth. Even if the Government meets its target to build more homes and home ownership picks up, we can expect large numbers of people to be living in the PRS for a significant period of their lives. Indeed, the proportion of over-65s living in the PRS in Britain is projected to triple from 4 per cent in 2022 to 13 per cent in 2040."

• At an event at the Institute for Government earlier this year, the Housing Minister, Matthew Pennycook MP, is reported to have said that buy-to-let landlords were mostly selling up because of tax changes introduced under the last Conservative Government. See details here.
• Further information about the NRLA can be found at www.nrla.org.uk.  It posts on X @NRLAssociation.
• For further information contact Ed Jacobs by emailing ed.jacobs@publicaffairsco.com or calling 07900 052659.
• The NRLA’s press office can be contacted by emailing press@nrla.org.uk or by calling 0300 131 6363.