Buy-to-let
The quarterly snapshot of developments in the PRS and buy-to-let market showed that 36 per cent of landlords reported rising levels of tenant demand during the period, compared to six per cent who said it was falling.
Both of these variables are more positive than the previous quarter, when 29 per cent reported growing tenant demand and eight per cent said it was falling. The proportion of landlords reporting growing levels of tenant demand has risen consistently since the second quarter of 2008, coinciding with constrained mortgage supply in the owner-occupier market.
Looking forward, 42 per cent of landlords believe that tenant demand will be stronger in 12 months' time, which is a considerable increase on the previous quarter (35 per cent), although a higher proportion (10 per cent) also forecast falling tenant demand over the next year compared to the previous quarter (eight per cent).
Nigel Terrington, Paragon Group chief executive, said: "Demand for private rented property is buoyant and many landlords have tenants competing for their properties. The third quarter of the year is historically a strong period for rented property with the beginning of the new academic year and recent graduates starting in employment, but this level of demand has been exacerbated by the low levels of mortgage lending in the owner-occupier market. This continues to translate into demand for rented property as people are unable or unwilling to buy in their current environment."
