Rental demand continues to grow
The buy-to-let lenders Paragon Mortgages says that 43% of landlords surveyed believe demand is either growing or booming, in their most recent findings the trend for strong tenant demand is well established, with ongoing steady growth for the past three consecutive quarters.
This level of growth is expected to continue over the coming 12 months, the research also identified the types of tenant groups that landlords are most frequently letting to with almost half of landlords (47%) renting to young couples, young singles (43%) and families with children (42%).
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.”
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