Rental income was particularly healthy with 29% of landlords having increased their income during the second quarter, the majority of whom reported an increase of between 2% and 4% said the Q2 Private Rented Sector Trends Report, a quarterly survey of 200 experienced professional landlords.
Landlords were also more optimistic about the net value of their portfolios with 19% in Q2 expecting an increase in value compared to the 13% in Q1 and fewer forecasting declining values with 12% expecting a decline in the second quarter compared to the 19% who expected a decline in the first three months of the year.
The report also said there was a shift in the types of property that landlords were looking to add to the portfolios during the third quarter.
Of those looking to purchase during the quarter, terraced houses were the most popular choice with more than half of landlords saying they expected to buy this type of property.
Nigel Terrington, Paragon group chief executive, said: “Our report emphasises the fact that there is significantly more optimism amongst landlords in the private rented sector and the buy-to-let market, and that looks likely to increase during the coming quarters.
“Landlords are still experiencing high levels of tenant demand which is set to rise further in the coming quarters. It is encouraging to see yields remaining at a healthy level, low void periods and general confidence across the sector.”
