The number of landlords who are feeling optimistic about the rental market is at its highest level for five years.
The latest survey of over 600 landlords from Paragon Bank questioned landlords on their expectations for rental yields, the future of their lettings portfolio, capital gains, the private rental sector and the wider UK financial market revealed that the outlook was more positive than levels seen in the previous survey in 2016.
Landlords with the outlook to be either “good” or “very good” has been consistently rising following record low levels seen in the first quarter of 2020.
The survey also highlighted a link between optimism and portfolio size, with landlords who manage larger portfolios more positive about the prospects for their own lettings business. The survey found that 56% of landlords with 11 or more properties felt “good” or “very good”, falling to 46% for those with between one and 10 properties.
Confidence in landlords can affect their purchasing decisions with 63% of landlords who have recently bought a property having a positive outlook, compared to 48% of the total of landlords surveyed. In addition, 78% of landlords who plan to expand their lettings business in the next 12 months are optimistic, whereas confidence was seen in a lower proportion, 26%, amongst those looking to divest.
Landlord confidence dropped sharply in the Q1 of 2020, as the extent of the pandemic became more apparent. However, it appears that optimism has bounced back which shows that the sector is strong with plenty of opportunities for landlords.
Demand remains at historic high
According to Arla Propertymark, the average number of people looking for a property to let fell from 107 per letting agent branch in August to 83 in September. This is higher than the 82 recorded per branch this time last year – making it the highest number registered in September.
The number of properties managed per letting agent branch went up slightly on a monthly basis, from 196 to 199, which is higher than September 2020’s figure of 193. In addition, the number of tenants who saw their rent go up in September stood at 75%, down slightly from August’s figure of 79%.
Despite a slight easing over the short term, in September 2019, 58% of tenants saw their rent rise and this year’s figure is the highest for September on record.
If you have a property that you are considering letting out, talk to us at Newton Letting. We believe that every rental property is different and so is every landlord. As a result, we have several different options for landlords who want to manage their property through Newton.
Whatever package you choose, you will work with a property manager who understands the local market and maximises your investment.
Talk to us today for a letting valuation for your property.