Less than half of landlords in the UK are optimistic about the reliability of a steady rental yield, according to a new survey.
The National Landlords’ Association (NLA) says that over the last two years the number of landlords who expressed confidence in the sector has fallen by 15% to reach 49% in the second quarter of 2017.
The dramatic fall in confidence chimes with various government announcements including the removal of mortgage interest relief and the stamp duty surcharge.
Despite these, rental yields around the UK have remained stable at around 6%.
The best region for landlords to enjoy rental yields in the east Midlands with 6.9%.
Landlords with rental properties in outer London
The lowest yields seen by landlords with rental properties is for those in outer London with 5%.
The NLA’s chief executive, Richard Lambert, said: “There's a steady decrease in landlords’ confidence in their ability for making a profit from a letting property and average rental yields have remained stable over the last few years.
“Many landlords will now be feeling the impact of greater costs and taxation on their business which will eat away at profits and make it more difficult to provide homes.”
However, another survey has revealed that landlords are confident about the future of the sector with property consultants Knight Knox saying that rental property remains a safe long-term investment for those savvy landlords.
Their recent survey reveals that 59% of landlords remain confident in the renting of buy to let property with just 11% saying they've lost confidence in the buy to let sector.
In addition, 30% of landlords say they are unsure about the future of the sector but 50% say they are looking to add to their portfolio over the coming years.
Landlords need to register with Rent Smart Wales
Meanwhile, figures reveal that one in five landlords are still not registered with Rent Smart Wales despite the scheme starting nearly two years ago.
The scheme is run by Cardiff Council which says it is now looking at its enforcement policies to help coordinate action from 22 different local authorities.
The Residential Landlords’ Association (RLA) says that the 20% rate of non-compliance is down to poor communication and a complex online registration system.
A spokesman for the RLA said that many landlords lead normal lives and are unlikely to be avid followers of rental industry news or engage with their local authorities.
The RLA says more resources need to be put into the system since landlords can be intimidated or put off when trying to comply with the scheme.
Under the Rent Smart Scheme all landlords, regardless of where they live, who have a rental property in Wales must register it.
