As reported by MoneyFacts.co.uk landlords are optimistic that the demand for rented accommodation will remain high.
Demand for rental accommodation remained high during June, according to a new study of the UK’s landlords and property investors. Around 93% of landlords believe that demand for privately rented properties had either remained stable or continued to grow during quarter two of this year, with 86% predicting this trend to continue over the forthcoming months.
Levels of optimism are high amongst investors, with 30% stating that they were hopeful about their business and property portfolios going forward. Demand for rented housing has soared since the credit crisis took hold, as cautious lenders pulled many of their products and tightened their lending criteria leaving many prospective buyers locked out of the property market.
Despite recent reports of improved levels of lending activity in the mortgage and housing market, demand from tenants has remained steady as the cost of purchasing a home remains out of the grasp of many would-be buyers.
Director of mortgages at Paragon Mortgages, which compiled the research, John Heron, said: “This long-running survey is designed to improve our understanding of changes in landlord sentiment, motivation and outlook and the second quarter results paint a picture of a strong, confident and growing market.
“Landlords are consistently seeing strong rental demand, and on the back of better availability of buy-to-let mortgages they are planning to buy more property, which should improve the supply of property to tenants, thus easing some of the pressure that has been building.”
