The levels of confidence amongst landlords is improving after suffering from historic low levels, according to one index.
BM Solutions says landlords expressing confidence in their business has seen its biggest improvement to 41%, an increase of 5% on the record low recorded in the second quarter of this year.
Landlords say they are also confident about the future of the country's financial markets and in the capital gains they can enjoy from their property investments.
However, the index also reveals that demand from tenants has continued to decline with just 22% of landlords in the third-quarter reporting an increase in demand.
That's the lowest level seen in tenant demand for five years.
The strongest levels of demand were enjoyed by landlords with properties in the East Midlands where demand grew by 40%, followed by Yorkshire with 39%.
Landlords saying that demand from tenants is in decline
The only regions with landlords saying that demand from tenants is in decline are the south east and London.
The index also reveals that the average rental yield remained stable at 5.8% with landlords in the East Midlands having the highest yields with 6.7%.
Landlords in the North West saw yields of 6.4% and in the north east yields are 6.1%, while in central London the yields are the lowest in a country at 5.1%.
Also, around one in five landlords are looking to reduce their portfolios over the coming 12 months, say researchers.
The head of BM Solutions, Phil Rickards, said: “Confidence decline is a key measure, particularly for the landlord’s business, having improved in the last quarter with profitability remaining high.
“Our report shows that more than eight in 10 landlords make a profit from their lettings business.”
Landlords and 10 and is unaware of rights
Meanwhile, a survey of landlords and tenants has revealed that many are unsure about their rental rights.
The findings from online letting agency LetBritain suggest that many landlords and tenants are unaware of the laws covering deposits, tenant eviction, charges and rent prices.
Around one in three tenants said they did not know that their deposit must be placed in a deposit protection scheme and, surprisingly, 12% of landlords were also unaware of this rule.
Also, the fact tenants can challenge excessive charges being made by their landlord through an ombudsman was an unknown fact for 43% of tenants and 19% of landlords.