Tenant demand 'on the rise' - buy to let mortgages

04 February 2009

Demand for private rental accommodation continues to be strong, new research has suggested.

A report from Paragon Mortgages has noted that more than a third of landlords are experiencing rising demand for their properties at present.

In addition, 40 per cent of those questioned predicted that interest from tenants will grow over the coming year, something that could be good news for holders of buy to let mortgages.

The study also showed that the average amount of homes in a landlord's portfolio increased from 12.1 to 13.2 in the third quarter of 2008.

Managing director of Paragon John Heron commented: "There are opportunities for residential property investors with cash to spend to expand their portfolios in the current market and maybe we are starting to see evidence of this."

Meanwhile, buy to let investors in London have been advised to avoid lettings agents that charge unfair fees by the National Landlords Association.