The expansion of the private rental sector is being driven by wide-scale tenant demand, according to the latest research from LSL Property Services.
The Landlord Opinion Survey found that 41 per cent of landlords and buy to let property owners had noted an increase in demand during the past six months.
Average void periods have decreased, while the number of new tenancies signed in August was up 6.9 per cent year-on-year.
Of all the landlords surveyed, 21 per cent said that it is a good time to invest in buy to let properties, while 18 per cent had already invested within the past 12 months.
More than half of the landlords and buy to let investors that like the current conditions believe strong demand from tenants is the main factor behind them.
Property prices were viewed as being attractive by 54 per cent of investors and superior capital returns to other forms of investment were deemed a leading factor by 45 per cent of landlords.
The coming months are also viewed in a positive light, with 63 per cent of landlords expecting tenant demand to increase further in the coming months.
This figure is up from 56 per cent in January, when LSL Property Services posed the same set of questions to landlords.
Just five per cent of landlords and investors who were questioned believe that the number of people looking to rent will decrease in the months ahead.
Approximately 22 per cent of landlords expect to add to their portfolio during the next year, up from 18 per cent in January.
“Demand for rented accommodation is climbing, and there’s little sign of this stopping … the PRS remains the safety net supporting those still saving for a deposit,” said David Newnes, executive director of estate agency at LSL.
“This is in addition to the thousands of people who rely on renting to offer them flexibility and freedom in their working lives.”
Mr Newnes also stated that tenants would notice the benefits of increased investment as it would ease the strain of rental growth.
Tenant demand has been driving changes in the Buy to Let market during the last parts of 2014. See the articles below for more information about it all.
Five tenants pursue every rental property claims Countrywide.
10 per cent more rental properties are available on the UK market.
ARLA Suggest tenant demand outnumbers available properties.