New research by Paragon Mortgages has found that continued growth in the BTL market is rife in the second quarter, with 43% of landlords experiencing a rise in tenant demand.
The most recent findings show that the trend for strong tenant demand is well-established, with ongoing steady growth for the past three consecutive quarters.
The level of growth is expected to continue over the next 12 months with more than half of landlords (51%) believing they will continue to see a rise in demand.
The research also identified the 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.”
