According to specialist buy-to-let mortgage lender Paragon, 56% of investors who took part in its quarterly survey believe tenant demand will either grow or boom this year, compared with 45% of those landlords asked the same question at the end of 2010.
Only 6% think demand will fall this year.
When it comes to rents, 45% of landlords think they will keep increasing in 2012, 53% think they will stay the same and just 2% believe there will be a reduction.
Arrears on buy-to-let mortgages are forecast to remain stable by 66% of landlords, while 20% believe we will see a modest increase.
Nigel Terrington, chief executive of Paragon Group, said: “It is no surprise that landlords are expecting a healthy level of tenant demand in the New Year, based on the levels of demand we have seen steadily increase throughout the past 12 months.
“2011 was certainly a good year for the buy-to-let market, with not only increasing tenant demand but landlords investing in their portfolios, low levels of arrears and more available finance.
“With the success of 2011 to build on, I believe the private rented sector will continue to perform and provide a valuable tenure choice for even more people in 2012.
“This year will bring its own challenges, especially with the uncertainty in Europe and the wider financial markets affecting overall confidence levels. But I believe that the foundations that we laid as a sector in 2011 will allow lenders and landlords to continue to do business, in particular if we see a greater level of product innovation. We should look to 2012 with optimism as it is sure to bring further opportunities.”
