East Midlands Top for Landlord Optimism

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Landlord optimism is highest in the East Midlands according to the latest research by BVA BDRC, reported by buy to let finance provider Paragon.

Landlords operating in the East Midlands are the most optimistic about the future prospects for their rental business according to the latest quarterly research from BVA BDRC examining the attitudes and experience of over 850 landlords in England and Wales.

Landlord optimism in the East Midlands leads the way, with half of landlords in the region saying they felt good or very good regarding expectations for rental yields over the next three months, with one in three (31 per cent) also reporting optimism about the prospect for capital gains.

Yorkshire and Humber also had a high level of landlord optimism for rental yields at 46 per cent, though just 16 per cent expected to enjoy capital gains in the area.

Following closely behind came the South West, where landlord optimism for rental yields was reported to be 45 per cent.

This contrasts with Wales, where landlord optimism was the lowest. Fewer than one in three (29 per cent) of landlords in Wales felt good about the outlook for rental yields and fewer than one in seven (14 per cent) saw the potential for capital gains.

Landlords in the North East were least likely (8 per cent) to rate the outlook for capital gains positively.

Landlords in the East Midlands, together with those in Yorkshire and Humber, also achieved the highest reported rental yield at 6.1 per cent, compared with an average for landlords operating across all regions of 5.6 per cent.

However, only landlords in the East of England, Yorkshire and Humber and London added to their property portfolios in the last three months. In all other areas, sellers either outweighed or were equal to buyers.

John Heron, Managing Director of Mortgages at Paragon said: ‘Despite the positive picture in some regions, it’s clear landlords are feeling bruised. All the available data shows that tax changes have driven landlords to pull back from the market and encouraged a sharper focus on yields. This has reduced the stock available to rent and we are now seeing inflationary pressures building in many regions. The upshot is that tenants are having a harder time finding a good quality home in the sector and having to pay more for it.’

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