In the past three months over 40% of landlords have reported an increase in tenant demand in their area, which is expected to continue throughout 2016.
The National Landlords Association carried out a survey which shows a 48% increase in tenant growth in East England, 45% in South West, 41% in South East and 40% in Outer London.
Carolyn Uphill, Chairman, NLA, said: “These figures demonstrate just how important the private rented sector is in housing a growing number of people. Our research indicates that five per cent of landlords will sell up following the Government’s plans to remove mortgage interest relief for landlords, which could affect some 600,000 tenancies. The Government’s planned changes, which will be phased over a period of years, gives landlords effected time to review their finances, but some will still be forced to sell or trade at a loss which is unsustainable and the projected impact will mean that ultimately renters will lose out as a dwindling stock drives up prices and competition for homes.”
According to lender Paragon Mortgages the rise in tenant demand is being predominant driven by young people and families.
John Heron, Managing Director of Paragon Mortgages states, ‘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’.
For more details from NLA visit: http://www.landlordreferencing.co.uk/forum/discuss/community-forum/nla-tenant-demand-continues-to-rise/