Landlord confidence may have taken a dip in the second quarter of 2017, but despite that profitability has remained high, according to the latest quarterly index from BM Solutions.

The quarterly BM Solutions/BDRC Continental Landlord Panel found that confidence in landlords’ ‘own business’ and the wider ‘private rental sector’ have fallen a little - by around 5 per cent.

Despite the decline, landlord profitability remains high, with 86 per cent of landlords making a profit from their lettings business. Meanwhile, rental yields have risen to 6 per cent.

Phil Rickards, Head of BM Solutions, said: “Landlords are feeling somewhat gloomier in the second quarter and we know some are finding it difficult to adjust to the recent tax changes, which is why those with portfolios of over 11 are most likely to be looking to decrease the number of properties they own in the next year.

“This quarter the report has also highlighted declining tenant demand and a fall in intentions to raise rents. However, even against this backdrop, along with profitability remaining high, rental yields have edged up from the first quarter to 6 per cent.”

“Continuing profitability - despite all the current changes - is fantastic news for landlords,” says Alex Huntley, Head of Operations at Simple Landlords Insurance. “It shows the resilience of the sector - and that there’s still money to be made in property.

“It’s also great to see the BM Solutions figures show that the proportion of landlords looking to buy more rental properties - increasing from 13 to 15 per cent in Q2.”

BM Solutions also found that nearly a third of landlords (31 per cent) make a full time living from their rental portfolio and over half (55 per cent) use the income to supplement earnings from their day jobs.