2014 looks like it is going to be a bright year for the private rental sector, according to a recent survey carried out by LSL Property Services.
The research found that in the past six months 41% of the 2,195 landlords polled saw a rise in tenant demand, with just one in sixteen saying that demand had fallen.
The majority of landlords asked predicted that demand will increase further in 2014, with just 10% anticipating a decline.
Nearly a fifth (18%) of landlords plan to increase their portfolios during the year ahead, while 16% said that they already expanded in 2013.
David Newnes, director of LSL Property Services, says: “The rise in house prices is evidence of the underlying buoyancy in the property market and the stabilising of rent rises is an indication of the current healthy state of the rental sector.
Demand for rented accommodation is strong, exemplified by the fact that the number of lettings, new viewings and applicants are all rising. There are strong foundations for prosperity in the rental sector, fuelled by increased economic optimism and future job creation. Against the backdrop of growing economic stability, more confidence is driving people forward in search of the attractive deals on offer across the buy-to-let mortgage market, which will allow them to benefit from the attractive returns.”
Over three quarters of landlords (77%) think now is a good time to buy or sell rental properties with the those who think now is a right time to buy citing attractive property prices and good capital returns (compared to other forms of investment) as the main factors. Others mentioned strong tenant demand as a key factor.