Many landlords have seen an increase in tenant demand in the second quarter of this year and are upbeat about demand in the next 12 months, according to new research from buy-to-let specialist Paragon Mortgages.
Over two-fifths (43 per cent) of surveyed landlords have experienced growing or booming tenant demand in the second quarter. More than half (51 per cent) expect demand to continue increasing in the next 12 months.
The research suggest that the trend for strong tenant demand is well-established, with ongoing steady growth for the past three consecutive quarters, Paragon says.
The research also identified the tenant groups that landlords are most frequently letting to with almost half of landlords (47 per cent) renting to young couples, young singles (43 per cent) and families with children (42 per cent).
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.”
