Tenant demand 'on the increase'

Posted: 28 Apr 2011 12:02:49 GMT

Tenant demand in the UK is continuing to rise, it has been found.

Demand for rented property in the UK is continuing to rise, new figures have shown.

According to statistics compiled by Paragon Group, nearly half of landlords in the nation reported increasing demand in the first quarter of 2011.

The study revealed that 49 per cent of proprietors witnessed higher numbers of tenants in search of their property, while only five per cent of those questioned said it was decreasing.

Nigel Terrington, chief executive at Paragon, noted demand has escalated of late, adding: "This is expected to rise due to a number of factors, including social housing reforms, lifestyle choices, low numbers of first-time buyers and wider demographic changes."

This movement is contributing elevated rents, while a lack of available mortgage finance is strangling the chances of the sector expanding further, Mr Terrington pointed out.

Earlier in the month, a study conducted by the Bank of Scotland showed that buying property is a more affordable option than renting, as the cost of buying a house is beginning to slide.
 

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