Confidence among the UK landlords reaches a 5-year high
Data by London market researcher BVA BDRC reveals the share of optimistic landlords reaching a five-year record high.
The UK-based Paragon Bank commissioned research on landlords. BVA BDRC surveyed more than 600 landlords with questions including expectations on rental profits, the UK financial market and the private rental sector.
The central finding is that the share of those surveyed who marked their expectations as «good or «very good» exceeded the number seen in the third quarter of 2016 (Q3 2016).
The data also reveals that larger portfolios result in greater optimism about lettings. More than half (56%) of surveyed landlords with 11+ properties feel optimistic about their lettings. The share falls to 46% among landlords between 1 and 10 units.
The data suggests another trend: optimism and confidence are interlinked with the property purchase patterns. The share of optimistic landlords with a recent property purchase reaches 63%. The number stands at just 48% when all respondents are taken into account.
Moreover, 78% of landlords who plan a property purchase feel optimistic and confident about lettings. It sharply contrasts with the share of confident respondents looking to divest: it stands at 26%.
Housing industry specialists Richard Rowntree highlights the falling landlord confidence during Q1 2020 when the scale of the pandemic became evident.
But Rowntree says it is «fantastic» to see recovering confidence. It indicates strength present in the rental market sector. Landlords face opportunities and issues daily, and the evaluation of their outlooks can give helpful «insights for the industry».