But despite this dip in business expectations, over half (52%) of the landlords interviewed still believe their prospects are good or very good, and one in five are currently looking to buy more property, which is a higher proportion of landlords than those planning to sell.
This positive note is reflected in early signs of a recovery in the perceptions of property as having good potential for investment growth. Over half (54%) of landlords believe property offers a strong or reasonable potential for growth when compared to other forms of investment. Back in December 2007, 10% fewer landlords were positive about the potential of property.
Lynsey Sweales, director of The Money Centre, said: "Buying property is always best viewed as a medium to long term investment option and that's how most buy-to-let landlords see it. The research shows the average length of time landlords expect to be in letting is 17.5 years, which is why scaremongering over house prices dropping is not a major concern for professional landlords."
Rental yield expectations are also picking up since the end of last year. There is a slight increase in the number of landlords who state their expectations are very good, and the number of landlords who felt expectations are very good or good has remained static at 61% since December.
