Landlords appear cautiously optimistic about the future of the private rented sector (PRS), according to a survey by Landbay.
The specialist BTL mortgage lender found that a smaller proportion of landlords (27%) now feel negative about their prospects compared to 37% at the end of last year.
This shift in sentiment appears to be driven by continued high demand for rental properties.
The opinion is particularly strong among landlords with large portfolios - those with more than 20 properties.
One landlord told researchers: "While the world is uncertain, the demand for residential property and accommodation is and will remain very high."
Many reasons to be optimistic
The lender's sales and distribution director, Rob Stanton, said: "There are many reasons to be optimistic about buy to let.
"Not only has it survived countless crises and changing governments over the years, but it also continues to thrive too."
He added: "Nurturing confidence among landlords is absolutely key to the health and prosperity of the UK housing market, helping to provide much-needed accommodation.
"With affordability still a real challenge for residential buyers and demand continuing to outstrip supply, there is an abundance of tenants ready to rent across the country.”
Government policy changes for the PRS
However, uncertainty over future potential government policies for the private rented sector (PRS) continues to cast a shadow.
A key concern for many landlords is the proposed abolition of Section 21 'no-fault' evictions.
Both Labour and the Conservatives have signalled support for this policy change, leaving some landlords worried about the impact on their ability to manage their properties.
Another landlord commented: "Everyone is anti-landlord. With the lack of affordable housing, we are the scapegoats."
'Trend of policies regarding private rentals'
However, one landlord took a more philosophical view, saying that "the current trend of policies regarding private rentals will have such a detrimental effect on the rental market that I do not see them either coming to fruition or lasting for long if they do. Time is on the side of landlords."
Landlords with a portfolio of more than 20 properties were the most optimistic about the future, while those with between four to 10 properties, felt more negative than positive.
The feelings of landlords with between 11 and 20 properties were evenly split between positive and negative sentiment.
For HMO landlords, 43% say they feel positive about their business - just under 30% are feeling negative.
Optimism among many landlord
While Landbay's survey suggests a growing sense of optimism among many landlords, it's important to note that concerns remain - highlighted by a separate survey by Leaders Romans Group.
The property management company found that more than 60% of landlords fear potential tax increases, which they believe could lead to higher rents for tenants.
Also, nearly half (45%) of respondents expressed anxieties about the introduction of stricter regulations that could make the rental process more complex.
Inflation and the rising cost of living were also identified as major concerns by more than half of the landlords surveyed.
PRS is at a crossroads
The managing director of Accommodation for Students, Simon Thompson, said: "The private rented sector appears to be at a crossroads.
"While high tenant demand and steady rental income are boosting confidence among some landlords, anxieties persist regarding potential policy changes, rising costs and stricter regulations."
He added: "The future of the PRS will depend on how these competing forces play out in the coming months and years.
"For optimistic landlords, the future looks rosy, while for pessimistic landlords, the potential for regulation will make being a landlord much harder - and less profitable."
