Buy-to-let investors are feeling more positive in four out of five areas measured by the quarterly BM Solutions and BDRC survey.
Rental yields reaped by landlords in the second quarter of 2018 is at 6.2%, its highest since Q4 2014, according to the findings.
But ironically, landlord confidence in rental yields was the one area where confidence was found to have fallen on a quarterly basis.
The biggest increase in optimism was around investors’ own business, which increased by 8% year-on-year and 3% quarter-on-quarter.
Sentiment towards the UK’s financial markets, capital gains and the private rental sector also increased.
Regional rental yields and tenant demand
Landlords in Wales and the East of England reported the highest rental yields of 6.9% and 6.7% respectively.
The lowest were in the North East with 5.7%, and the South East at 5.8%.
Outer London yields were at 5.9%.
Tenant demand was most likely to have increased in the East and West Midlands over the last three months with tenant demand lowest in inner and outer London and the North East, the survey showed.
Landlords in the East Midlands and North East were most likely to expand their portfolios over the next 12 months, with around one in five suggesting they could increase their properties.
Phil Rickards, head of BM Solutions (pictured), said: “It is encouraging to see that confidence across all of the key indicators has either increased or stayed the same on a 12 monthly basis and is particularly strong when landlords are considering their own lettings business.
“It’s a promising sign for landlords that rental yields are on the increase and are recovering some of the ground they have lost in recent years.”