Almost nine in 10 landlords, or 87%, reported making a revenue within the second quarter of the 12 months, only one proportion level off a five-year excessive, knowledge from Paragon Bank reveals.
The quantity of landlords who stated they made a revenue from their lettings lifted by 3% within the April-to-June interval from the primary three months of 2025.
This is only one proportion level beneath the five-year excessive of 88% posted within the closing quarter of 2020, in keeping with a ballot carried out by knowledge group Pegasus Insight on behalf of the specialist lender.
However, whereas the proportion making a revenue has grown for the reason that first quarter of the 12 months, there was a decline, to five% from 7%, in those that reported a loss.
(*10*) the identical interval, the proportion of landlords who broke even remained at 8%.
Paragon Bank managing director of mortgages Louisa Sedgwick says that the ballot “chimes with current evaluation of our personal lending knowledge, which revealed that yields, a key determinant of revenue, remained at nearly their highest ranges in over a decade.
“As properly as reflecting the resilience of the sector, these findings spotlight how continued demand for good high quality, versatile housing signifies that buy-to-let property stays a horny asset for landlords.”
The examine additionally highlighted the impression that points with tenants can have on lettings, with profitability decrease amongst landlords who reported experiencing arrears within the final 12 months, 79%, these whose property was broken, 79%, and those that wanted to evict a tenant, 78%.
Sedgwick provides: “It’s fascinating to see that the info suggests there could also be a hyperlink between profitability and harmonious relationships between accountable landlords and respectful tenants.
“This reveals that it’s not at all times plain crusing for landlords. We know that they work exhausting, and with the analysis additionally exhibiting that, on common, they spend greater than a fifth of their gross rental revenue working and sustaining their properties, the earnings they make end result from the money and time they put into offering good high quality properties for renters.”
