Confidence in rental market 'on the increase'

News Category: Industry News

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Letting agents have observed an increase in confidence among landlords in the long-term prospects of the rental market, according to a report.

Research from financial advice site lovemoney.com has suggested that a third of landlords believe that demand from tenants is set to increase within the next year.

The report cites figures from Arla which show that 16 per cent of letting agents have observed local rented property owners continuing to expand their portfolios, despite the fact that supply is currently exceeding demand.

However, author Christina Jordan cautioned that this bullishness could be undermined if mortgage lending to landlords does not increase.

She also highlighted the importance of continued rental industry health, saying: "A contracting or stagnating private rented sector will simply push up rents for those who can least afford an increase."

This comes after price comparison site moneysupermarket.com last week indicated that the number of available buy-to-let mortgage products has fallen by 70 per cent in the last year, which it warned could prove detrimental to the market.

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