Landlord confidence returns in Q3, study shows

Confidence among landlords rebounded in the third quarter new research published by Paragon Bank has indicated, with optimism around the landlord community now higher than at the same period last year.

All aspects of landlord confidence measured by research agency BVA BDRC, on behalf of Paragon, registered improvement compared to Q2, driven by more stable market and economic conditions.

The most notable uplift of 16 percentage points since Q2 could be seen in the outlook for rental yields, with 49% of landlords rating their expectations for this aspect of their lettings business as either “good” or “very good” in Q3. This came alongside an increase of 11 percentage points in the proportion of landlords who are confident in the prospects of their own lettings business, the second largest rise.

Landlord confidence in the private rented sector (PRS) increased by eight percentage points compared to Q2, while expectations for capital gains climbed by six percentage points.

The research of almost 800 landlords highlighted how optimism for the UK financial market was more muted, experiencing a more modest increase of two percentage points.

As a result, the figures mean that landlords are more confident about all aspects of letting, with the exception of capital gains, compared to the same period in 2022, particularly with respect to rental yields and their own lettings business.

Managing director of mortgages at Paragon, Richard Rowntree, said: “It’s great to see a lift in optimism amongst landlords, reflecting some of the stability that we’ve seen return to the market and economy more broadly.

“Landlords play a vital role in the UK’s housing provision, so it is important that they feel confident in the investment environment, particularly at a time when demand continues to outstrip supply. Although there is still work to be done on all sides as we work to improve the PRS for both tenants and landlords, we’re encouraged by signs that the value of private investment is being recognised by Government. I imagine that recent policy announcements will have had a positive influence on how landlords see the prospects for the sector and their businesses.”

He added: “It’s also worth noting that this research was undertaken before it was announced that the removal of Section 21 would be delayed until court reforms and a new ground for possession for student landlords was created. These are both significant changes to the Renter’s Reform Bill that will likely be welcomed by landlords so could add to the more positive outlook.”



Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.


Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.

In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.