Landlords who took part in the specialist lender’s quarterly Private Rented Trends Survey reported an average rental portfolio of 13.2 properties - an increase on the average 12.7 properties in Q4. In the next 12 months landlords expect to increase this to 13.7 properties.
Tenant demand also shows no sign of slowing down, with 43% of landlords saying that over the next 12 months they think that demand will grow or boom.
Private investor landlords (those with between one and five rental properties) were more optimistic about demand levels with 48% saying that they expect demand to grow or boom, compared with 41% of professional landlords.
Those surveyed were also asked whether they are expecting to buy further rental property in the second quarter, of which 13% are planning to do so. Almost half (41%) of those looking to purchase property are planning to buy terraced houses, this was followed by semi-detached houses (30%) and flats and maisonettes (30%).
John Heron, Director of Mortgages, said:
“Tenant demand has remained high for a number of years and this is unlikely to change in the foreseeable future. Private rented sector housing is the only growing housing tenure in the UK and increasing pressure is being put on the sector.
“As professional landlords remain constrained by limited equity and access to funding, private investor landlords will drive growth in the sector, growth that is desperately needed to meet the ever increasing demand from tenants.”
