29th June 2015
Given the need for properties across the private rented sector, nearly half, at 43% of UK landlords, believing demand is either growing or actually booming.
The research by specialist buy-to-let lender, Paragon Mortgages, showed that the trend for strong tenant demand is well-established, with ongoing steady growth for the past three consecutive quarters.
The level of growth is expected to continue over the next 12 months with more than half of landlords, at 51%, believing they will continue to see a rise in demand.
The research also identified the tenant groups that landlords are most frequently letting to with 47% of landlords, renting to young couples, 43% to young singles and 42% to families with children.
John Heron, managing director of Paragon Mortgages, said: “It is no surprise that rental demand is steadily increasing. With continued stress on the housing stock driving prices up, tough affordability hurdles for would-be buyers and a social rented sector under pressure as a result of renewed interest in right-to-buy, a steady increase in rental demand was practically inevitable.
“It is important that landlords continue to expand the supply of rented property in order to maintain balance and so avoid unsustainable increases in rents. A healthy, competitive and innovative buy-to-let market is critical to this.”