Feb

How are you feeling about being a landlord? Well, that depends on your location and portfolio size!

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Research by buy-to-let mortgage firm Paragon rising optimism among landlords but with surprisingly wide regional and business sector differences.

Landlords in the South West and East Midlands are most likely to be feeling good about their business and predicted yields over the next three months, while those in central London and the North West most downbeat about their balance sheet.

In its quarterly market overview, buy-to-let mortgage provider Paragon reports that it’s not all doom and gloom in the sector, with those renting out 11 or more properties the most positive about their prospects.

Interviewing
nearly 800 landlords, it found 42% in the South West rated business
expectations as good or very good in the next three months compared with 23% in
the North West.

Boris
bounce

The
Boris Bounce seems to be filtering down into the private rented sector generally,
as Paragon found a big jump in landlord confidence in the UK financial market,
with 24% rating its prospects as good or very good compared to just 9% in Q3.

And
although they’re less optimistic about the prospects for yields, landlords
still believe both rents and property prices will increase as a direct result
of the election; a quarter of respondents said rents would rise, compared to 1%
who predicted a fall.

Richard Rowntree, Paragon managing director of mortgages,
welcomed the green shoots of recovery in confidence after several quarters of declining
optimism.

“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,” he says.

“Although
tenant demand has remained strong, landlords have had to weather a myriad of
regulatory and tax changes over the past five years, so they will be looking
for Government to allow those changes to fully bed in and for a period of
consistency.”

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