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New research has shown landlord confidence that rental demand will rise over the course of 2020.
The research, carried out by specialist buy to let mortgage lender Paragon, found that almost four out of ten buy to let investment property landlords believe that rental demand for residential property will increase over the next 12 months.
Paragon’s Trends research found that 37 per cent of landlords expect tenant demand for residential property to grow during 2020, compared to just 7.3 per cent predicting a fall in rental demand.
The new optimistic forecast from Paragon comes on the back of a strong end to 2019, with over one in four (27 per cent) of landlords experiencing an increase in tenant demand for residential property during the final quarter of the year.
Richard Rowntree, Paragon Managing Director of Mortgages, said: ‘Although home ownership is increasing on the back of Government policies, there is clearly still growing demand for rented property for a variety of reasons.
‘We expect to see tenant demand to continue to increase in the coming years and it’s important the Private Rented Sector is adequately financed to ensure tenants have a good choice of property and rental inflation is kept under control.’
The Government’s recent English Housing Survey found that the number of households in the Private Rented Sector has remained unchanged at 4.6 million, or 19 per cent of all housing tenures in the country.
However, the length of time households are staying in residential private rented property is increasing, from an average of 4.1 years to an average of 4.4 years. The report also found that over the past decade, the proportion of 55-64 year-olds in private rented accommodation has increased from 7 per cent to 10 per cent.
It seems that despite government legislation and punitive tax measures, landlords remain confident about the future of the buy to let investment property sector.