"Whilst we have been able to track a modest recovery in confidence since 2015, the sector is still some way off its peak"
However reassuringly, there is an increased understanding of the changes amongst landlords, with 78% now saying they understand the personal implications, up 8% from Q4 2016.
This increase in understanding is paired with a smaller percentage of landlords saying they do not understand the implications (7% from 11%) or they require more information (13% from 18%).
Landlord optimism also remained stable in Q1 2017, suggesting confidence is returning following a turbulent 18 months, as landlords gain greater understanding of the pressures they are likely to face and develop strategies to mitigate at least some of the impact.
John Heron, Managing Director of Paragon Mortgages, said: “It’s encouraging to see that the PRS has not been negatively impacted to the degree that had been widely predicted, despite some turbulence over the last couple of years. This increase in understanding combined with effective financial planning may be the key drivers behind a steadier picture in terms of overall optimism amongst landlords.
“However, we remain cautious, as landlords will not be fully impacted for some years yet and, whilst we have been able to track a modest recovery in confidence since 2015, the sector is still some way off its peak; the PRS is finely balanced and will remain so for some time.”
