Landlord confidence reaches five-year high

Landlord confidence reaches five-year high

Landlord confidence is at its highest level for more than five years – and that’s definitely in line with what we’re certainly hearing from our landlords here at Parkers.

Researchers from Paragon bank quizzed more than 600 landlords on their optimism for the future – with 48% saying they felt ‘Good’ or ‘Very Good’ about their business prospects moving forward, despite the enormous impact of Covid-19.

 

The Paragon survey asked more than 600 UK landlords for their expectations on:

 

  • Rental yields
  • The future of their property businesses
  • Capital gains
  • The private rented sector as a whole
  • The wider UK financial outlook

 

And the survey of landlords revealed:

 

  • 48% had ‘Good’ or ‘Very Good’ expectations for their portfolios
  • 47% had ‘Good’ or ‘Very Good’ expectations for capital gains
  • 26% had ‘Good’ or ‘Very Good’ expectations for the UK financial market
  • 38% had ‘Good’ or ‘Very Good’ expectations for the private rented sector
  • 56% 11 or more properties in their portfolio felt ‘Good’ or ‘Very Good’ about their business prospects
  • 46% with between one and 10 properties felt ‘Good’ or ‘Very Good’ about their business prospects
  • 63% who had recently purchased a rental property felt ‘Good’ or ‘Very Good’ about their business prospects
  • 78% with plans to expand their portfolio over the next 12 months felt ‘Good’ or ‘Very Good’ about their business prospects

 

Managing Director Kate Randall said: “It’s fantastic to see a huge rise in optimism and confidence from UK landlords – and this is certainly in line with what we’re hearing from the landlords we work with.

“The pandemic has had a big impact, but what we’re seeing now is a private rented sector that is much stronger from that experience.

“Property remains an excellent wealth generation tool for landlords, while tenants are benefitting from improved standards, too, so it’s no surprise to see renter demand so strong at the moment.”

Richard Rowntree, managing director for mortgages at Paragon, said: “Understandably, landlord confidence fell sharply in the first quarter of 2020, as the extent of the pandemic became clear.

“It is fantastic to see optimism bounce back and rise in the time since.

“It is an indication of the strength of the sector. Landlords see the sector’s issues and opportunities daily, so measuring their outlook can provide useful insight for the industry and, as we see here, investor confidence can have a real impact on behaviour.”