More than half of landlords in the east of England said they felt upbeat about the prospects of their letting business over the next three months, making it the most confident region.
Around eight out of every ten landlords in the east (81%) reported stable or increasing demand for rental property in their area.
The east and west midlands also performed well, with 81% and 76% of landlords respectively noting stable or increasing demand. These were also among the top five regions in England and Wales for rental yield and capital gains, the study found.
At the other end of the scale, investors in the capital were the least optimistic. Just one in four (26%) rated their business’s prospects as good or very good for the next quarter.
What’s more, just 57% of London landlords reported stable or increasing tenant demand, the lowest of any region. More than a quarter of landlords in the capital cut rents in the last 12 months, the highest of any region.
John Heron (pictured), managing director of mortgages at Paragon said: “After an unprecedented level of change, it’s encouraging to see landlord confidence stabilising this quarter. At a regional level, the east of England and the midlands look well supported, with encouraging data on tenant demand, yield and capital gains while the London market adjusts its footing after many years of strong growth.”