Landlord confidence over the prospects for the buy-to-let sector has strengthened over the last three months, a new survey has revealed.
According to the latest Paragon Private Rented Sector Trends report, one in five landlords are more optimistic regarding the prospects for their property portfolios compared to the previous quarter.
Tenant demand also continued to improve, while expectations over levels of demand in 12 month's time heightened too.
Yields increased slightly during the quarter to 6.1%, up from 6% in the second quarter, while the average number of properties in a portfolio also crept higher.
However, landlords said that the availability of buy-to-let mortgage finance continued to be constrained.
Almost two thirds of those questioned reported limited buy-to-let mortgage finance availability during the third quarter of the year.
Despite the problems that some landlords are experiencing in securing buy-to-let mortgage deals, the chief executive of the Paragon Group, Nigel Terrington, said that the prospects for landlords were strong.
"Demand for private rented property is buoyant and many landlords have tenants competing for their properties," Mr Terrington explained.
"The third quarter of the year is historically a strong period for rented property with the beginning of the new academic year and recent graduates starting in employment, but this level of demand has been exacerbated by the low levels of mortgage lending in the owner-occupier market.
"This continues to translate into demand for rented property as people are unable or unwilling to buy in the current environment.
"Tenant demand continues to strengthen, yields are healthy and stable and confidence is high. The housing market is presenting some strong buying opportunities and landlords are well placed to take advantage."
Find the best mortgage rate - Compare best selling mortgages
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.