According to research from specialist buy-to-let lender Paragon Mortgages, 41% of lendlords think tenants demand will increase in 2013 and just 6% believe it will fall.
Of the 15% of landlords planning to buy more buy-to-let property this year, 47% will look to purchase terraced houses, flats and maisonettes; 30% semi-detached and 20% multi-unit blocks.
Houses in Multiple Occupation (HMOs) and detached houses are furthest down the shopping list at 13% and 10% respectively.
The landlords surveyed own an average of 12.7 buy-to-let properties, set to rise to 13.2 properties by the end of 2013.
According to the research, 64% plan to carry out improvements to some or all of their properties, with 30% looking to install a new kitchen or bathroom and 26% planning to fit a new boiler.
John Heron, managing director of Paragon Mortgages, said: “2012 was a good, steady year for landlords. They continued to invest in their property portfolios, albeit at a slower pace than needed for the PRS to cope with increasing levels of tenant demand.