Two thirds (65%) of private landlords in the UK have said they are optimistic about the future performance of their property investments, research by Butterfield Mortgages has revealed.

Although there is general positivity looking forward, landlords cited political uncertainty as a notable challenge.

In an independent survey of 2,000 UK adults commissioned by Butterfield Mortgages, more than three fifths (62%) said they wanted to see greater consistency and clarity in Government policy that affects landlords.

Almost half (45%) of those surveyed said they had made EPC upgrades to their properties since 2021, only for the new energy regulations for buy-to-let properties to be scrapped in September.

Reflecting the demand for consistent policy from the Government, half of private landlords (51%) said they will await the outcome of the next General Election before deciding how to manage their property investment portfolio.

Looking to 2024, a third (32%) believed that house prices will rise next year, with almost half (47%) believe the BoE’s base rate will start to come back down.

Chief executive officer at Butterfield Mortgages, Alpa Bhakta, said: "After a turbulent two years from both an economic and political perspective, it is noteworthy that two thirds of UK landlords remain optimistic about how their property investment will perform. But our research also shines a light on the challenges they face.

"Clearly, most landlords do not expect house prices to immediately return to growth in 2024, even if the base rate does start to come back down. Moreover, inconsistency in government policy appears to have resulted in a degree of hesitancy among private landlords, with many likely to sit tight and await the election outcome so they can gain greater clarity on what reforms and regulations might be introduced in the next parliament. It will be interesting to see how the political parties approach the property market in their election campaigns next year."

---