Tenant Demand Set to Grow in 2012

Landlords expect a rise in demand for rental property in 2012, research by Paragon Group, specialist buy-to-let lender suggests.

The majority of property owners anticipate a rise in demand, with 56% of landlords saying that they expect tenant demand to grow or boom in 2012, which compares favourably to the 45% who expected an increase at the end of 2010. A mere 6% of those taking part in the survey expected tenant demand to drop for rental property in 2012. Rental income is also set to increase according to 45% of the landlords surveyed, whilst according to 53%, it will remain stable.

2011 was already a good year for landlords of rental properties with high levels of tenant demand, and the private rented sector has the potential to grow even further in 2012. As Nigel Terrington, Chief Executive of Paragon Group comments: “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 foundation that was 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.”

Apart from an increase in overall tenant demand in 2012, the student accommodation sector is expected to be strong this year. Strong demand for accommodation among students and undersupply mean that many landlords can benefit from a rise in demand from students, especially in larger university cities, including Bournemouth. Student accommodation is a good property investment, with returns on student accommodation rising consistently in recent years.

The UK property market is showing other positive signs, such as an increase in asking prices by 1.4% in the first week of 2012, and a record level of online search activity for properties, with a 27% rise compared to the same period in 2011.

If you are thinking of renting your property in Bournemouth or you are looking for a rental property in Bournemouth, have a look at our property services and contact us today.