Increased optimism from BTL landlords

The Q2 Private Rented Sector Trends Report from Paragon Mortgages gives a detailed overview of the PRS sector and buy-to-let market which showed that 23% of landlords feel more optimistic about the prospects for their portfolios.

Demonstrating this increasing optimism, these landlords expect to have an average of 13.1 residential properties in their portfolios in a year’s time, compared to 12.6 properties currently. This is the first time in two years that the surveyed landlords have predicted a potential future increase in the number of properties in their portfolios.

Rental income is particularly healthy, with three out of ten landlords (29%) having increased their income during the second quarter, the majority of which reported an increase of between 2% and 4%.

Landlords are also more optimistic about the net value of their portfolios, with a growing proportion expecting an increase in value (14% Q2 vs 13% Q1), and fewer forecasting declining values (12% Q2 vs 19% Q1). The majority of landlords (74%) expect net values to remain the same.

Nigel Terrington, Paragon Group Chief Executive, said: “Our report emphasises the fact that there is significantly more optimism amongst landlords in the private rented sector and the buy-to-let market, and that looks likely to increase during the coming quarters.”