Landlords in the south of England were more upbeat about their prospects than those elsewhere, according to research from Landbay.
Research revealed that almost a quarter (23%) of landlords based in the South said they felt positive about the future, compared to 17% in the Midlands and 13% in the North.
In the North, 44% said they felt negative about their prospects, compared to 39% in the South and 42% in the Midlands.
Rob Stanton, sales and distribution director at Landbay, said: “Given the current economic climate and the state of play when it comes to taxation and future regulation, landlords in the north and Midlands can be forgiven for not feeling more upbeat about their prospects.”
Landlords using limited company structures were more confident than individuals, with only 35% of those borrowing as limited companies saying they felt negative, compared to 56% of individuals.
Those with between four and 10 properties were the most confident, with 31% feeling positive.
Landlords with more than 20 properties were least confident, with 55% saying they felt negative.
One landlord in the South East, operating mainly via limited companies, said: “Unless the government unleashes a 1960s-type building boom and build a massive number of council houses, the pressure of limited available rental stock versus the demand from young tenants will ensure rents are buoyant and provide a good business for buy-to-let landlords.”
Another landlord, working in the West Midlands, said: “The future is going to be tough. While there is a demand, there are headwinds and challenges facing landlords.”
Additionally, research showed that around two in every five landlords said they felt neutral about the future.
Nationally, 18% felt positive and 42% negative and only 0.75% of those polled said they were selling all their properties.
Of those who were neutral, 25% were considering selling part of their portfolios, and none were selling up completely.
Meanwhile, just under half (47%) ruled out expanding their portfolios.
Stanton said: “Landlords have seen some huge changes in the BTL market – increases in stamp duty and the Renters’ Rights Bill being two very significant ones – and may have been unsettled by escalating geopolitical tensions recently, too. That’s all hit sentiment.
“While there are certainly some headwinds to contend with, it is reassuring to know so few of them are choosing to cut and run entirely.
“There are forty landlords looking to expand their properties for every one landlord planning to chuck in their portfolios entirely.”
Stanton added: “Property remains a reliable investment vehicle. Not only does demand continue to outstrip supply, rental yields are strong.
“Add in a broad range of products that can support landlords in a wide variety of situations, and I’d argue that, even with headwinds, there is reason to be optimistic about building, maintaining and expanding a rental portfolio.”
