Some key findings from the Pegasus Insight Landlord Trends Research Q1 2025 (fieldwork conducted 9–30 March 2025).

Landlord Confidence Wanes
Compared to last year, landlords are less optimistic about the PRS’s short-term outlook. Only 31% feel positive about their own lettings business, down 7% from 2024. This drop reflects growing caution amid market challenges.

Buying and Selling Plans
The survey shows a clear trend toward portfolio reduction:

• Only 7% of landlords plan to buy properties in the next 12 months.
• A significant 38% intend to sell within the same period.

For those buying:

• 57% will use a Buy-to-Let (BTL) mortgage.
• 59% plan to purchase through a Limited Company BTL structure, signaling a shift toward tax-efficient setups.

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Rent Increases Surge
Rent hikes have become widespread, with 70% of landlords raising rents in the past 12 months—up sharply from just 21% in 2021. This reflects rising costs and market pressures, impacting tenants significantly.

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Portfolio and Yield Insights
The typical landlord owns 7.3 properties, with an average gross rental yield of 6.3%. Financing remains key:

• 57% of landlords have at least one BTL mortgage.
• On average, landlords hold 5.6 BTL mortgages, underscoring the sector’s reliance on leveraged investments.

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