Private landlords regain confidence in the third quarter


According to research conducted by BVA BDRC, the changed sentiment was a result of a more stable market and economic environment

Private landlords showed signs of confidence in the sector in the third quarter and were more hopeful than this time last year, according to a lender’s survey.

According to research conducted by BVA BDRC on behalf of Paragon Bank, the changed sentiment was a result of a more stable market and economic environment.

Around 49% of landlords said the outlook for rental yields was either good or very good, which was 16% up on the second quarter. There was also an 11% increase in the proportion of landlords who were confident in the prospects of their own lettings business.

Compared to the second quarter, the share of landlords who felt positive about the private rental sector increased by 8%, while expectations for capital gains increased by 6%.

Landlord responses were a little more subdued when asked about the outlook of the UK financial market, as there was just a 2% rise in respondents showing optimism.

Overall, landlords showed more confidence on all metrics except capital gains compared to 2022. The most optimism was seen towards rental yields and their own business.

Richard Rowntree, managing director of mortgages at Paragon Bank, said: It is great to see a rise in optimism amongst landlords, reflecting some of the stability that we have seen return to the market and economy more broadly.

He said that landlords play a crucial role in the UK’s housing provision, so it is important that they feel confident in the investment environment, especially at a time when demand continues to outpace supply. Although there is still work to be done on all sides as we work to improve the private rental sector for both tenants and landlords, we are uplifted by signs that the value of private investment is being acknowledged by government. I imagine that recent policy announcements will have had a positive effect on how landlords see the prospects for the sector and their businesses.

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