Independent research commissioned by Paragon Mortgages and carried out by BDRC Continental has reported a continuing return of landlord confidence.
Two thirds (66%) of the landlords that took part in the research rated their business expectations for the next quarter as good or very good. This is the highest level achieved since 2007.
Landlords were also asked to describe their expectations for the private rented sector for the coming quarter and 57% said their expectations were good or very good, further demonstrating their increasing confidence.
During the second quarter 12% of landlords added an average of 2.6 properties to their portfolios and 22% said that they plan on buying further buy-to-let property in the next 12 months.
More generally landlords were also asked for their feedback on other areas of the market such as average rental yields and void periods. Landlords reported an average rental yield of 6.2% in Q2 and a third (34%) experienced a void period in the last quarter – the lowest percentage for the last 12 months.
Landlords also revealed that their most prolific tenant type was young couples (54%) followed by young singles (49%) and then families with children (47%).
John Heron, managing director of Paragon Mortgages, said: “The latest English Housing Survey published earlier this month shows that the private rented sector now accounts for 3.6 million households in England. This is 17% of the total number of households and practically accounts for the same level as the social rented sector.
“This is a remarkable shift in tenure that - in the context of housing patterns at least - has happened over a very short period of time. It has been made possible by a relatively enlightened approach to landlord and tenant regulation and because buy-to-let finance has allowed landlords to expand their portfolios.
"Our own survey indicates that landlords remain positive about the future of the sector and are looking to expand their portfolios further in order to meet the growing demand from private renters. I am pleased to see that confidence is growing and that it has reached its highest level post-credit crunch.”
