Confidence among buy-to-let landlords has more than doubled over the past year, according to research published by Landbay.
The survey found that 36% of landlords now feel positive about the future of their buy-to-let businesses, up from just 18% following last year’s Autumn Budget. The proportion of landlords feeling negative about their prospects has fallen sharply over the same period, from 43% to 21%.
While 44% of landlords remain neutral – broadly unchanged from previous surveys – the data points to a marked recovery in sentiment across the sector.
Respondents cited strong rental demand and sustained yields as the main reasons for optimism. One landlord commented that reduced supply from others exiting the market had bolstered returns, adding: “Whilst landlords are exiting the market, this has caused rents to increase because of the lack of stock, allowing a decent return. It took two hours to rent my last property.”
Another landlord said: “I believe that demand for rental will continue, the country cannot build the number of new homes required. Operating as a limited company still works – those owned in personal names are less viable which we intend to address when the time is right.”
The findings are based on responses in May from landlords with a combined total of around 3,000 properties. The research was completed before reports emerged that the Treasury was considering requiring landlords to pay National Insurance on rental income as part of potential measures in the forthcoming Autumn Budget.
Rob Stanton, sales and distribution director at Landbay, said: “It is very encouraging to see landlord confidence rebounding. The data reflects what we are hearing on the ground with high rental demand and strong yields helping to underpin optimism across the sector.
“On top of that, our survey and lending data tells us that landlords remain committed to the sector – not just staying put, but seizing new investment opportunities available in the market.”
He added: “As the data demonstrates, this isn’t the story for everyone and is likely a shifting picture as we head towards the Autumn Budget. As a lender in this space, it is our duty to work closely with our intermediary partners to throw our arms around these landlords, remind them what the sector has to offer and use our broad range of products to give them the confidence to refinance their existing properties and expand their rental portfolios.”
Landbay’s latest landlord survey forms part of its ongoing research into investor sentiment, regulation, and the impact of government policy on the buy-to-let market.
