For the first time in five years, landlords are feeling the most optimistic about the different aspects of the lettings market.
New research has been carried out by Paragon Bank, where landlords were asked to rate their expectations for different areas of the lettings market, including rental yields, their own lettings business and capital gains.
It was found that a large proportion deemed the outlook for these measures to either be ‘good’ or ‘very good’, exceeding levels seen in Q3 2016.
Using a sample size of 600 landlords, there was a correlation between optimism and portfolio size, which meant that landlords with larger sized portfolios felt more upbeat and positive about their lettings income and business.
For landlords who own 11 or more properties, 56% felt either ‘good’ or ‘very good’. Whilst this figure came to 46% for landlords with between one and ten listings.
A correlation was also found between confidence and property purchase behaviour, whereby 63% of people that had recently purchased a property had a more positive outlook compared to other respondents.
It has also been proven that the landlords that are looking to expand their lettings business in the next year are a lot more optimistic compared to the 26% looking to divest.
As could be expected, landlord confidence fell rapidly in the first quarter of 2020 due to COVID 19, so it is really great to see a return of assurance to the market, with a rental boom likely to happen in the new year.
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