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Landlords forecast rising tenant demand for 2012

Landlords forecast rising tenant demand for 2012

Wednesday, 11 January 2012 11:37 AM

More than half of landlords expect demand from tenants to increase this year, according to a survey by Paragon Group.

The buy-to-let lender said 56 per cent of landlords in its latest quarterly survey expected tenant demand to either grow or boom compared with 45 per cent in its last survey in 2010. Only six per cent think demand will fall in 2012.

When asked whether about their rental income, 45 per cent of landlords said it would rise in 2012, 53 per cent said it would remain stable and only two per cent said it would fall.

Meanwhile two thirds of landlords thought their arrears levels would remain stable this year and 20 per cent thought they would see a moderate increase.

Nigel Terrington, chief executive of Paragon Group, said: "It is no surprise that landlords are expecting a healthy level of tenant demand in the New Year, based on the levels of demand we have seen steadily increase throughout the past 12 months.

"2011 was certainly a good year for the buy-to-let market, with not only increasing tenant demand but landlords investing in their portfolios, low levels of arrears and more available finance.

"With the success of 2011 to build on, I believe the private rented sector will continue to perform and provide a valuable tenure choice for even more people in 2012."

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