Landlord optimism surges as confidence rebounds in the buy to let market

Positivity is returning to the buy to let sector, with landlord confidence more than doubling since last year’s Autumn Budget, Landbay has found.

The lender says its survey found that 36% of landlords now feel upbeat about the future of their rental businesses, compared with just 18% a year ago.

At the same time, those feeling pessimistic have dropped sharply from 43% to only 21%.

Around 44% remain neutral, which is broadly unchanged from Landbay’s previous polls.

Landlord confidence rebounding

Landbay’s sales and distribution director, Rob Stanton, 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.”

Rising rents and tenant demand

The poll also found that many landlords say rising rents and continued tenant demand are fuelling their optimism.

Despite tougher regulation and tax pressures, long-term investors described property as ‘very viable’ and a ‘rewarding investment’.

One landlord said: “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 added: “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.”