The quarterly survey of nearly 791 landlords by BVA BDRC found that confidence rose across four of five measures during the final quarter of 2019 compared to the previous three months.
The biggest growth in confidence was towards the UK financial market, where 24 per cent rated prospects as ‘good’ or ‘very good’ compared to just nine per cent in Q3.
Optimism for the broader private rental sector, capital gains and the landlord’s own lettings business also increased over the period.
The only area to see a dip in confidence was rental yields, as 39 per cent rated prospects as ‘good’ or ‘very good’ compared to 40 per cent in the previous quarter.
Despite the drop in confidence towards yields, a quarter of respondents said rents would rise, compared to one per cent who predict a fall. Some 32 per cent expect property prices to rise, while 14 per cent forecasting a decline.
Regional and portfolio differences
Landlords in the South West and East Midlands were most upbeat about the prospects for their own lettings business over the next three months, and they were also most confident about yields.
Additionally, landlords with 11 or more properties tended to be more positive on the prospects for rental yield and the financial markets than those with smaller portfolios.
Richard Rowntree (pictured), Paragon managing director of mortgages, said: “After several quarters of declining optimism amongst landlords, it’s pleasing to see the green shoots of recovery in confidence.
“Although still low compared to historic levels, a more certain political and economic landscape will hopefully provide the platform for confidence to continue to grow.”