The proportion of landlords reporting a rise in tenant demand increased by 2% on the first quarter in 2015, with just 6% in quarter two reporting a decline in demand compared to 8% the previous quarter.

The North East and Wales saw a surge in interest among individuals looking to rent a home, with appetite in the regions rising by 18% and 13%, respectively. The West Midlands saw the largest drop in landlords reporting increased demand in the last quarter, as appetite dropped 8% to 37%.

The average landlord now holds a buy-to-let portfolio worth £1.1m, generating a gross rental income of £51,000 a year.

Landlord confidence in the UK financial market market reached a record high, according to BM Solutions’ findings, with a net 37% reporting confidence in the outlook for the next three months. Confidence in the prospects of the UK private rental sector was also up, as 56% of landlords expressed confidence in the market, compared to 53% in Q1.

With increasing confidence, landlords also saw boosts in rent prices and yields improve. Half of landlords reported rents increasing in the areas where they let over the last 12 months, up from 46% in the first quarter, while just 3% said they had noticed a fall in rents. After falling to its lowest level for five years in Q1 at 5.7%, the average rental yield improved to 5.9%.

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