Demand for buy to let property on the rise, research reveals

20 July 2010

Written by Jeni Browne

Buy to let landlords have reported an increase in tenant demand, one organisation has revealed.

According to research conducted by Paragon, 29 per cent of portfolio investors claimed to have seen a rise in people looking for rented property, while ten per cent noticed a fall in the number of individuals showing interest in their assets.

This indicates that almost three times as many landlords reported increased demand in the second quarter compared with the first three months of the year, when 24 per cent of buy to let professionals said more tenants were seeking to rent.

Nigel Terrington, chief executive or Paragon Group, noted that for the past two years, the number of people looking for buy to let accommodation had been rising, while the trend is set to continue.

"Strong tenant demand is great news for landlords, but will lead to rental inflation for tenants unless the private rented sector is able to expand to meet this demand," he commented.

People may also be staying in buy to let housing for longer, as a study by Capital Economics recently showed that 38 per cent of those staying in leased property renewed their contracts last year, compared with 33 per cent in 2008.

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