Landlord confidence has dropped to its lowest ever level in terms of the proportion looking to buy more properties, BM Solutions’ quarterly index has found.
Just 16% planned expand their portfolio in the fourth quarter of 2016, the lowest proportion recorded since the research began in 2006.
In terms of sentiment just 25% felt ‘good’ or ‘very good’ about the prospects of the private rental sector, a 12% drop from Q3.
Phil Rickards, head of BM Solutions, said: “Continued economic uncertainty, together with budgetary announcements that may impact on landlords’ profitability have resulted in a general weakening of confidence in the buy-to-let market in the last quarter of 2016.
“As a result, the proportion of landlords looking to expand their portfolio has fallen to an all-time low.
“However, despite this dip in confidence, profitability still remains strong with rental yields stable.
“Just over half of landlords are also still reporting a trend in increasing rents in the areas they let.”