Landlord sentiment remains stable despite widespread economic turmoil, according to Landbay.
The lender’s latest research says homeowners are continuing to make informed and thoughtful decisions about their portfolios.
But the survey also found a growing gap between homeowners’ confidence in their portfolios and their view of the broader economy.
Landlords’ views of potential buy-to-let businesses have stabilized, with 41.4% of landlords describing themselves as neutral, with 21.8% optimistic and 36.8% negative.
But confidence in the UK economy remains significantly low, with 69.2% expressing a negative view, 27.1% neutral and just 3.8% positive.
Landbay said this reflects a market where landlords are focusing on what they can control, namely portfolio performance and financing, while remaining vigilant about the broader economic outlook.
Many homeowners do not plan to buy or sell in the next 12 months, although the majority still plan to do something, the act of underlining is always moderate rather than humiliating.
Just over half (51.9%) say they are not currently planning to buy more properties, while over a third (35.3%) plan to add to their portfolio.
At the same time, sales targets remain in line with previous findings, suggesting a continuous portfolio reshaping instead of any large-scale exit from the sector.
Landbay said this shows the ability of landlords to adapt to current conditions, even if they remain cautious about the direction of the wider economy.
Despite the current setback, many homeowners continue to report strong gains. A large number achieve a total yield between 4-6% (27.1%), with a large number (21.8%) reporting a yield in the 6% to 8% range; 15.8% of respondents reported a yield of 10% or more.
At the same time, rents continue to rise, with more than 75% of landlords planning an increase of some kind in the next 12 months.
However, the way the rent is arranged is becoming more flexible, which Landbay suggests is due in part to the introduction of the Tenants’ Rights Act, landlords balancing the need to manage rising costs against their new legal obligations and being able to pay tenants.
The results show that homeowners continue to prefer fixed-price products. The majority (87.2%) indicated a preference for two, three or five-year fixed rates as their next mortgage, with a five-year fix (46.6%) remaining the most popular choice.
Despite the increased discussion about tracker products on the market, only 6% of homeowners said they would choose this option for their next mortgage.
Landbay sales and distribution director Rob Stanton said: “The key difference compared to our previous survey results is that sentiment and confidence appear to be stable, even during a turbulent few months, especially when it comes to product availability and pricing.
“Homeowners, for the most part, appear to be very confident about their property businesses, and the future of their investments, even as their views on the future performance of the broader economy remain highly skeptical.”
