Landlords Positive About Tenant Demand
Tenant demand in the second quarter (Q2) is continuing to grow, as 43% of landlords believe demand is either growing or booming, revealed research by specialist buy-to-let lender, Paragon Mortgages.
The study found that the trend for high tenant demand is strong, with continuous steady growth for the past three consecutive quarters.
This level of growth is expected to continue over the next 12 months, with over half of landlords (51%) predicting a further rise in demand.
The research also highlighted the tenant groups that landlords are most frequently renting to: Around half of landlords (47%) let to young couples, 43% to young singles and 42% to families with children.
Managing Director of Paragon Mortgages, John Heron, explains: “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 rental sector under pressure as a result of renewed interest in Right to Buy, a steady increase in rental demand was inevitable.
“It is important that landlords continue to expand the supply of rented property in order to maintain a balance and so avoid unsustainable increases in rents. A healthy, competitive and innovative buy-to-let market is critical to this.”1