Landlord optimism is at its highest since 2007 but remains fragile, according to the NLA’s newly launched Landlords’ Optimism Index.
57% of landlords rate overall prospects for their lettings business over the next three months as good or very good. The landlord body says this is, in part, due to increased tenant demand but also because of property value increases across the UK resulting in better capital gains. Increased optimism levels can also be at least partially explained by stronger profitability, with portfolio landlords back on track to generate sufficient revenue to ‘save income’ each month.
There has also been a slight improvement on how landlords perceive the UK financial markets. 28% said they expect markets to improve further over the next three months which is a five per cent improvement on this time last year.
Chris Norris, policy manager at the NLA, said: “Landlords have faced considerable challenges recently. Everything from longer void periods to an increase in rental arrears have taken their toll on landlords’ optimism. However