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Back In Business? Landlord confidence shows sharp rise in all areas

Landlord confidence has rebounded strongly in recent months according to a survey by a leading buy to let-focussed bank.

All aspects of landlord confidence measured by research agency BVA BDRC, on half of the Paragon Bank, improved in the third quarter compared to the second quarter, driven by 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 per cent 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, the second largest rise. 

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Landlord confidence in the private rented sector 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 of almost 800 landlords highlights how optimism for the UK financial market was more muted, experiencing a more modest increase of two percentage points. 

These figures mean that landlords are more confident about all aspects of letting, with the exception of capital gains, compared to the same period in 2022, particularly with respect to rental yields and their own lettings business.

Paragon Bank managing director of mortgages Richard Rowntree says: “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. 

“Landlords play a vital role in the UK’s housing provision, so it is important that they feel confident in the investment environment, particularly at a time when demand continues to outstrip supply. Although there is still work to be done on all sides as we work to improve the PRS for both tenants and landlords, we’re encouraged by signs that the value of private investment is being recognised by government. I imagine that recent policy announcements will have had a positive influence on how landlords see the prospects for the sector and their businesses.” 

He adds: “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.” 

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  • George Dawes

    I’m the total opposite, I really have had enough of the endless red tape and it’s only going to get worse

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    We all know what Labour have said 😰😰🆘🆘 and it’s this that will cause an increase in selling 💰💰 Confidence they say 😂😂😂 Sell….. and sell quick.

     
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    Utter twaddle - it is interesting that these types of articles claiming prs is doing ok is written on or on behalf of parties with a vested interest in keeping landlords in the market such as btl mortgage lenders or lettings agents - I imagine they are panicking seeing their income waving bye bye

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    Completely right Catherine. At most Landlord's have slightly paused and reflected on the EPC change and the hold on Section 21. To claim that this is increased confidence to me just shows how the questions would have been weighted.
    BTL is still dead in the water to most seasoned Landlord's with the big boy investors the only ones that are purchasing for cash currently and there is not that many of them in my view

     
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    Andy, you are quite correct about the way the questions are weighted. Many, many (more than I want to count) years ago I did a Sociology course. Part of it consisted of creating a questionnaire that was weighted to get the correct answers.

     
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    Who are they trying to kid?

  • Peter  Roberts

    Well they certainly don’t kid me.
    There is more chance of me learning how to knit Fog than to re-rent any of my properties as they become empty.
    I have recently sold 7 of 11.
    It would have been to sell one a year for Capital Gains Allowance but that’s all but gone now.
    BTL is done.

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    Ditto Peter

     
    Fed Up Landlord

    Eight out of 13 gone for me Peter. And the rest by 2025. Angola Rantyner. She can house the tenants.

     
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    If the number of Section 21 notices served is an index of landlord confidence, then landlord confidence is at an all time low. Figures released in November 2023 show that 8,747 tenants in England and Wales were asked to leave which is a 32% increase from last year.

    It is highly likely that that number will go up as the election approaches and landlords fear losing control of their properties.

  • John  Adams

    We live in times of false truth, where if you push a lie long enough it's accepted as truth.

    Inevitably and painfully the facts have a habit of pushing through eventually...

  • Nic Gone

    If I was in the mortgage business I would be thinking much harder about trying to drum up business with spun articles like this. Would I want to do new BTL lending at all when Labour politicians talk of plans which will create de facto sitting tenants, making assets unrecoverable at full market price?

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    Who makes up all this 💩!!!? Landlord confidence has rebounded... 😂 😂 😂 😂 I'm still making an exit!

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    Landlords Play a Vital Role, Landlords Confidence re-bounded. What Twaddle.




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    Not the rouge landlords.

     
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    Rouge like the colour of your face, SBR, when you realise that YET AGAIN, your tiny brain cannot grasp the difference between rogue and rouge. Makes your comments and opinions nonsensical, my dear.

     
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    Rogue landlords will always do well Sandra because good land lords won't touch rogue tenants so rogue tenants have no choice other than to use rogue landlords horses for courses as the saying goes ,they deserve each other

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    Andrew, what a cheeky "rouge" you are! Love your comment which is so true.

     
    Fed Up Landlord

    How many times do you see on Fakebook " Private LL wanted no agents or LLs that do references."

     
  • David Saunders

    BVABDRC went on to predict Everton winning the Premier League this season and Hell to freeze over by Christmas, mind the mornings are getting colder so who knows.

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    David. I wouldn’t knock Everton a great Club and older than Liverpool FC. Its those mad Penalties they imposed to ruined them.
    I was lived there in the ‘60’s the place was busing when Everton won the F,A cup and Goodison Park, hosted some of the World Cup games, Pelly played there and Brazil got knocked out there. They owned Anfield and set up Liverpool as far as I know. It was a great time to be there when England hosted the World Cup and won it.
    Scrap the Stupid Penalties Authorities think its the answer to everything.

  • David Saunders

    Spot on Michael they have great history with top players down the years including Wayne Rooney, Gary Lineker, Duncan Ferguson, Brian Labone, Joe Royale, Howard Kendal, Neville Southall and the great Dixie Dean. One of my brood went to Uni in Liverpool back in the 1990s and still goes on about what a great place it was live but sad to say Everton are being shafted in a similar way to todays PRS landlords.

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    John Chart sobs:

    When all you lot (as well as I) exit the PRS, there will be nobody left to post all these entertaining comments! "Landlord Today" will thus have to shut down! THIS is surely the real tragedy of the attack on the PRS !

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