Recent research undertaken by research agency BVA BDRC on behalf of Paragon Bank, has revealed that Landlord confidence rebounded strongly in the third quarter of the year, with optimism now higher than at the same period last year.
All aspects of landlord confidence improved compared to the second quarter, driven by more stable market and economic conditions. Here are the highlights:
- Of the 800 landlords surveyed, outlook for rental yields was particularly favourable, with 49% of landlords rating their expectations for this aspect of their lettings business as either good or very good (up 16% from the same time in 2022).
- Landlords also showed increasing confidence in the prospects of their own lettings business as a whole (up 11%).
- Landlord confidence in the private rented sector itself also increased (up 8%) compared to the second quarter of the year.
- Expectations for capital gains climbed by six percentage points.
- Finally, optimism for the UK financial market was more muted, experiencing a more modest increase of 2% year on year.
Overall, these figures mean that landlords are more confident about all aspects of letting, with the exception of capital gains, compared to the same period in 2022, particularly with respect to rental yields and their own lettings business.
It is worth noting, that this analysis was conducted before the recent favourable government review of the Renters Reform Bill was announced.
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