Landlord confidence has improved in Q3, with optimism now higher than at the same period last year, research undertaken on behalf of Paragon Bank has revealed.
All aspects of landlord confidence measured by research agency BVA BDRC improved compared to Q2, which Paragon attributes to more stable market and economic conditions.
The most notable uplift of 16 percentage points since Q2 2023 could be seen in the outlook for rental yields, with 49% of landlords rating their expectations for this aspect of their lettings business as either good or very good in Q3.
This links to an increase of 11 percentage points in the proportion of landlords who are confident in the prospects of their own lettings business.
Landlord confidence in the private rented sector (PRS) increased by eight percentage points compared to the second quarter of the year, while expectations for capital gains climbed by six percentage points.
The research also revealed that optimism for the UK financial market was more muted, with a less dramatic increase of two percentage points being seen.
Richard Rowntree, managing director at Paragon Bank (pictured above), said: “It’s great to see a lift in optimism amongst landlords, reflecting some of the stability that we’ve seen return to the market and economy more broadly.
“I imagine that recent policy announcements will have had a positive influence on how landlords see the prospects for the sector and their businesses.”
“It’s also worth noting that this research was undertaken before it was announced that the removal of Section 21 would be delayed until court reforms and a new ground for possession for student landlords was created.
“These are both significant changes to the Renter’s Reform Bill that will likely be welcomed by landlords so could add to the more positive outlook.”
