October 19, 2011
Tenant Demand Continues To Rise
Tenant demand continued to climb during the third quarter of the year, research by specialistbuy-to-let lender Paragon has revealed.
The Private Rented Sector Trends Report for the third quarter gives a detailed overview of the sector and landlords’ views on performance.
More than four out of tenlandlords (44%) said tenant demand increased during the third quarter and just 4% thought it declined. When asked for their forecast of tenant demand for the next 12 months, almost half of landlords (49%) said they expect it to continue to increase.
Rental income remained healthy for a third consecutive quarter with 34% of landlords reporting an increase and only 4% saying it had decreased. Of those landlords who achieved an increase in Q3, 11% said it was between 2% and 4%.
The report also reveals a shift in the types ofinvestment properties that landlords are looking to purchase. Terrace houses were the most popular choice at 41% followed by flats (35%) and then bungalows – which have surged in popularity from 2.7% in Q2 to 10% in Q3.
Nigel Terrington, chief executive of Paragon, said: “Tenant demand has continued to increase for a third quarter, which is perhaps not surprising considering the current squeeze on the UK housing market as a whole.
“More people than ever before are relying on the private rented sector, so it is positive to see that landlords are looking to invest in their property portfolios and are also diversifying the types ofinvestment property in which they are investing in order to meet tenant demand.”
