Landlords’ expectations for their lettings business have fallen to the lowest level since Q2 2023, according to new research.

Aldermore, in conjunction with Pegasus Insight, found that 27% of landlords felt positive in Q1 of this year, whereas throughout the previous two years, the percentage of landlords feeling positive hovered in the mid-30s.

Despite this, five out of six landlords (84%) report their lettings activity being profitable, with larger portfolio landlords more likely to report higher levels of profit, according to the research. It found that the average achieved yield was 6.5%, up slightly since last quarter - the joint second highest quarterly yield within the last five years.

“Generally speaking, we’re seeing that the more professional and sophisticated landlords are navigating the changing market with greater confidence, whereas part-time landlords with smaller portfolios can struggle to adapt,” says Jon Cooper, (pictured left) director of mortgages at Aldermore.

The share of landlords reporting strong tenant demand continues to decline, the research reveals. While 58% still classify demand as strong in Q1, this is down from 61% in Q4 2025, and down from 73% compared with Q1 last year.

Voids

According to the Goodlord Rental Index, voids increased from 22 to 24 days in April, after showing no change in the previous month. London saw the fastest turnaround between tenancies (17 days), while Yorkshire and the Humber's rental properties remained dormant the longest, as voids climbed to 29 days.

The firm reports that average new rents fell by 0.6% across England during April, in a further indication that the rental market is slowing down. In March, the average cost of a new rental in England was £1,212, failing to £1,205 in April. The sharpest decrease came in the North East, where new asking rents fell by a whopping 4.9% (from £820 down to £780) between March and April.

London

In London, rents were up 1.3%, while the largest increase came in the East Midlands, where prices jumped from £947 to £973 - a 2.7% spike.

Goodlord CEO William Reeve says stakeholders have been in a “defensive crouch”, anticipating the impact of regulatory changes. “With the new legislation now in force, the big question is whether this cooler backdrop gives the sector a chance to reset on a more sustainable footing - or whether the shock of new rules jolts supply, demand and therefore prices back into a more volatile phase,” he adds.

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