Tenant demand at all time high says Paragon

Posted: 16 Jan 2007 10:13:42 GMT

Tenant demand has reached record levels specialist mortgage broker Paragon has found, with almost a third of landlords saying demand is either "growing" or "booming".

Tenant demand has reached record levels specialist mortgage broker Paragon has found, with almost a third of landlords saying demand is either "growing" or "booming".

The figure is eight per cent up on the same survey in the last quarter of 2006. A further two-thirds of landlords say that demand remains stable.

"Demand for rental properties certainly shows no signs of declining," said John Heron of Paragon Mortgages.

"In all, we expect a busy year - with a rapidly increasing number of households in the UK and a long-term shortage of homes, demand for housing looks set to continue rising and buy-to-let can only benefit."

Landlord confidence in the market has also hit an all-time high and the average vacant period has fallen to three weeks in every 365.

Last week's increase in interest rates may raise the operating costs of rental – unless property was previously secured with a fixed rate mortgage – but will also boost demand.

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