According to research from Paragon Mortgages, landlords plan to increase their investment by 5.6 per cent this year.
41 per cent of landlords have an increased level of optimism concerning their property portfolios. The figure rises to 43 per cent among large-scale landlords, but drops to 33 per cent for individuals who only own a small number of properties.
John Heron, managing director of Paragon Mortgages, said: “We have seen a steady improvement in confidence among landlords over the past year as the housing recovery has gathered pace.”
“Whilst market data would suggest that we are a long way from boom territory, this optimism among landlords is key to maintaining balance in the housing market and in ensuring that renters have more choice,” he added.
36 per cent of the landlords surveyed said they think tenant demand is growing or booming, which represents an increase of two per cent on when the same question was asked at the end of last year.
37 per cent of landlords think tenant demand will increase over the second quarter of 2014, representing a five per cent rise compared to the final quarter of 2013.
To ensure the PRS continues to grow, Mr Heron said buy-to-let lenders must keep up the progress they have made over the past 12 months with “further measured and responsible development of products and criteria”.