Whitegates Managing Director Kate Randall has labelled new research revealing landlord confidence is at a record high “hugely encouraging, but not surprising”.
A survey of more than 600 residential landlords by Paragon Bank revealed a surge in private rented sector optimism – despite the ongoing impact of the Covid-19 pandemic.
Landlord confidence in the private rented sector is at its highest level for more than five years, according to the Paragon research.
The survey, which was last carried out in 2016, asked 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
In 2016, just before the EU referendum, only 19% of landlords surveyed had positive expectations for their rental property businesses.
Fast forward to 2021, however, and that figure has rocketed to 48%.
The landlord survey 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% with 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
Kate said: “It’s hugely encouraging to see such high levels in confidence in UK landlords – but also not surprising.
“The feedback we’ve been getting from our landlords for some time is of huge optimism for the future, because despite the pandemic and other economic forces, property remains a superb investment asset class.
“Tenant demand also remains strong, so it’s also no surprise to see a large number of landlords looking to expand their portfolios over the next 12 months.”
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.”