Landlords’ confidence in the success of their own businesses has plunged in recent months.
Only 29 per cent of landlords have positive expectations for their letting business over the next three months, down from 44 per cent at the same time last year.
This is now at a historic low, according to the latest BVA BDRC Landlords Panel surveying over 700 active landlords in the second quarter of this year.
The panel uses five confidence indices – Capital Gains, Rental Yields, UK Financial Market, UK Private Sector and Own Letting Business.
Confidence in capital gains fell to 23 per cent in the quarter, from 32 per cent in Q2 2018, and prospects for rental yields dropped from 49 per cent in the second quarter of 2018 to 39 in the second quarter 2019; this is the lowest recorded in over nine years.
More broadly, confidence in the sector and economy overall declined with 15 per cent optimistic about the UK Private Rented Sector, down from 21 per cent a year ago, and only 11 per cent optimistic about the UK Financial market, down from 15 per cent in Q2 2019.
However the proportion of landlords making a profit fell by just one per cent in Q2 from Q1 2019, and only four per cent of landlords say they are making a loss.
Being a landlord remains a strong investment with a third of landlords able to make a full-time living off of their lettings, and 53 per cent able to supplement their day job.