Private landlords in the UK are likely to see an increase in rental yields over the next few months, a new study has revealed.

According to market research agency BDRC, an increased number of people who own rental accommodation are feeling positive about the outlook for the rental sector.

For example, 18 per cent of respondents said the prospects for getting high returns over the next year are very good - more than during the previous quarter of the year.

This upturn in confidence has been driven by a surge in demand for rental properties, as well as the continuing slump in house prices.

BDRC added that higher demand for rented accommodation has led to rents rising, putting landlords in line to collect greater capital gains.

Mark Long, client services director at BDRC, commented: "There are certainly signs in our latest quarter's research that the financial situation is improving for private landlords."

This comes after Paragon Mortgages said the proportion of landlords that applied to extend their portfolios went up during the third quarter of the year.


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