Some 74 per cent of residential buy to let landlords feel confident about the performance of the property market over the next 12 months, with 27 per cent feeling very confident.

This is according to a sentiment survey by The Mortgage Lender.

Confidence in the future of the property market peaked for those landlords that predominantly owned HMOs at 86 per cent, student accommodation landlords at 84 per cent and portfolio landlords with more than five properties at 82 per cent.

When it came to the performance of their own rental properties over the next 12 months, 71 per cent of landlords felt confident, with portfolio landlords owning five or more properties feeling the most confident at 78 per cent.

Those more seasoned landlords that have been renting out properties for over five years were more likely to feel confident about their rental property portfolios over the next 12 months compared to those with less experience (73 vs 69 per cent), possibly due to the fact that they have weathered a number of economic cycles.

With BTL playing a critical part in the residential market mix, tenant demand has remained buoyant, helping to keep these confidence levels up. Indeed, 73 per cent of landlords said they’d seen demand from tenants increase over the last six months, with 27 per cent saying it had been a significant increase.

This increased demand and the wider economic market is also impacting rental prices, with 73 per cent of landlords reporting that they have increased their rental prices over the last 12 months, with the average going up by 34 per cent amongst those surveyed. Some 52 per cent said they had increased rents to keep up with the increase in their own rising costs, while a further 28 per cent were following the lead of other properties in the area where asking rents had increased.

Chris Kirby, Head of Key Accounts & Specialist Distribution at The Mortgage Lender, comments: “Given the pivotal role that the BTL industry plays in supporting the residential market and ensuring the maintenance of the much-needed supply of homes, it’s encouraging to see these levels of confidence. Despite the fact that many landlords are facing higher operating costs, and additional to the inflationary pressures that are impacting everyone, the continued supply of good quality, well maintained rental properties is a must.

“For landlords who are looking to expand their existing portfolio, or remortgage their properties, it’s important to seek broker advice to ensure they are accessing the best possible opportunities in the coming year.”