Is Landlord Confidence Rising as Cautious Investors Exit the Market?
- Robin Lawson
- 6 days ago
- 4 min read
The past few years have been a turbulent ride for UK landlords. Tax reforms, tighter regulations, rising interest rates, and the uncertainty surrounding the Renters (Reform) Bill have created a climate of caution. Yet, beneath the surface, there are signs of a resurgence. Landlord confidence is slowly but surely creeping back—particularly among those who view the current shakeout as an opportunity rather than a threat.
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A Market in Transition
Since 2022, thousands of landlords—particularly those with one or two properties—have chosen to exit the sector. The reasons are clear: dwindling margins, increased regulation, and concerns about future legislative changes. However, their departure is leaving gaps that savvy investors are beginning to fill.
This thinning of the herd is driving a shift in sentiment. With tenant demand holding firm and fewer landlords competing for business, landlord confidence is quietly rebounding among those with a long-term view and professional approach. In fact, it has increased by 24.8% in the previous quarter, according to the NRLA, albeit still remaining at a historically low level.
Why Confidence Is Building Again
A number of trends are underpinning this resurgence in landlord confidence:
Rising Rents: Rental prices have continued to climb in most UK regions, helping landlords to recoup increased costs and maintain healthy yields.
Improved Market Positioning: With fewer amateur landlords in the game, seasoned investors are enjoying more choice and reduced pressure when it comes to lettings.
Better Tools and Advice: From digital property management platforms to tailored tax planning, landlords are now better equipped to navigate complexity.
Spotlight on Newcastle and the North East
One region where this renewed landlord confidence is particularly evident is the North East of England, and especially Newcastle. While southern cities continue to wrestle with affordability issues, Newcastle’s property market offers an ideal blend of strong yields, solid capital growth prospects, and unwavering tenant demand.
With two major universities, a thriving tech sector, and a growing young professional population, Newcastle remains a magnet for renters. Meanwhile, the wider North East continues to attract attention from investors seeking better value than can be found in overheated southern markets.
The average rental yield in Newcastle is consistently higher than the national average.
Tenant demand remains strong across student, professional, and family sectors.
Regional investment and regeneration projects are enhancing the long-term outlook.
For landlords who act strategically, the North East represents not just a safe haven, but a growth opportunity. At Clarice Carr & Co, we’re seeing growing numbers of investors return to this market, confident that they can secure long-term value.
Who's Staying the Course?
While casual landlords are leaving, professional investors—many with portfolios or limited company structures—are doubling down. Their ability to adapt to tax changes, leverage expert advice, and manage properties efficiently is paying off. For them, landlord confidence isn't speculative—it's strategic.
A More Professional Future
This changing dynamic is reshaping the rental landscape. As the sector becomes more professionalised, confidence is becoming concentrated among those with the knowledge and support systems to succeed.
Buy-to-let lending is stabilising, new fixed-rate options are emerging, and technology is making property management less stressful. The result? A sector in which well-prepared landlords can thrive.
A Word from Clarice Carr & Co
We work with investors across the North East, helping them to identify opportunities, structure portfolios, and stay compliant with evolving regulations. Whether you're new to the sector or looking to grow your presence, we’re here to help.
Right now, landlord confidence is strongest where clarity and local knowledge are highest—and few regions offer more potential than Newcastle and the wider North East.
Want to know more? Check out our website or get in touch.
Looking Ahead
It’s easy to be put off by headlines, but they rarely tell the whole story. While some are stepping away, others are stepping up. With strong fundamentals, rising rents, and shifting dynamics in key regional markets, landlord confidence is set to rise further in 2025.
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