Tenant Demand for Rental Properties Hits 2-Year High

A recent report published by Paragon Group revealed that tenant demand for residential propety hit 2-year high in Q4 of 2010.

The Private Rented Sector Trends report showed that the proportion of landlords reporting increase in tenant demand was the highest since the last quarter of 2008. As such, this figure grew to 40%, which compares to 36% in Q3 2010. The proportion of landlords who reported a fall in tenant demand only amounted to 4%.

Commenting on the findings, Mr. Terrington of Paragon Group, said that "tenant demand shows no signs of slowing down and in some busy markets, such as London, there is anecdotal evidence of sealed bids being used for certain properties."

He highlighted that such situation is expected to remain unless more residential properties are available for rent. Thus, prospects for UK landlords are strong and they can take advantage of existing opportunities. “Tenant demand continues to strengthen, yields are healthy and stable and confidence is high,” he said.