Landlord sentiment remains stable despite wider economic turmoil, according to Landbay.
The lender’s latest sentiment survey said landlords continue to make clear and considered decisions about their portfolios.
But the survey also found a growing gap between landlord confidence in their own portfolios and their view of the wider economy.
Views of landlords’ individual buy-to-let businesses have settled, with 41.4% of landlords describing themselves as neutral, with 21.8% positive and 36.8% negative.
But confidence in the UK economy remains markedly more downbeat, with 69.2% expressing a negative outlook, 27.1% neutral and just 3.8% positive.
Landbay said this reflects a market where landlords are focused on what they can control themselves, namely portfolio performance and financing, while remaining cautious about the broader economic outlook.
Most landlords do not plan to either buy or sell over the next 12 months, although a significant proportion are still planning to act, underlining activity remains balanced rather than subdued.
Just over half (51.9%) said they do not currently plan to purchase additional properties, while over a third (35.3%) are planning to add to portfolios.
At the same time, selling intentions remain consistent with previous findings, suggesting ongoing portfolio reshaping rather than any large-scale exit from the sector.
Landbay said this reflects landlords’ ability to adapt to current conditions, even if they remain cautious about the direction of the wider economy.
Despite the current backdrop, many landlords continue to report solid returns. A considerable number are achieving gross yields between 4-6% (27.1%), with a large proportion (21.8%) reporting yields in the 6% to 8% range; 15.8% of respondents reported yields 10% or above.
At the same time, rents are continuing to move, with over 75% of landlords planning increases of some kind over the next 12 months.
However, the approach to rent setting is becoming more flexible, which Landbay suggested is due in part to the introduction of the Renters’ Rights Act, with landlords balancing the need to manage rising costs against their new legal responsibilities and tenant affordability.
The results show landlords continue to favour fixed-rate products. Most (87.2%) showed a preference for two, three or five-year fixed rates as their next mortgage, with five-year fixes (46.6%) remaining the most popular choice.
Despite increased discussion around tracker products in the market, just 6% of landlords said they were likely to choose this option for their next mortgage.
Landbay sales and distribution director Rob Stanton said: “The key difference compared to the results of our previous survey is that sentiment and confidence appears to have stabilised, even during a somewhat turbulent few months, particularly when it comes to product availability and rates.
“Landlords, for the most part, appear to be very confident about their own property businesses, and the future of their investments, even when their views on the future performance of the wider economy remain far more sceptical.”
