Landlords benefit from tenant demand

Posted: 11 Apr 2008 11:38:32 GMT

UK landlords believe that there is currently rapid growth in tenant demand.

UK landlords believe that there is currently rapid growth in tenant demand.

New research from Paragon Mortgages shows that a third of buy-to-let investors feel this way.

That is up on just over a quarter who felt the same at the end of last year and is a sign that the buy-to-let market is doing well.

The rise in demand and, therefore, confidence comes as a result of the global credit crunch and the resulting reduction in available mortgages.

This has forced many potential first-time buyers to rethink their home-buying ambitions, with many turning to rented accommodation instead.

"Our landlords are optimistic about the level of demand from tenants. Young people are choosing to remain in rented accommodation for longer due to the uncertain housing market outlook," said John Heron from Paragon.

"Despite much hype to the contrary, professional landlords enter into their investments with a long-term outlook and they will continue to provide a home for these people," he continued.

The Association of Residential Letting Agents revealed recently that buy-to-let returns increased in March.

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