Demand for rental accommodation remains high, study shows

13 2007
Demand for rental accommodation is set to remain high for the foreseeable future as students and professionals opt to rent rather than attempt to buy their way onto the property ladder, new research has found.

A study carried out by Bradford & Bingley found that, of the 4,000 private residential landlords questioned, 60 per cent are "categorically undaunted" about the prospect of a declining market, given the booming demand for properties.

In fact, 86 per cent revealed plans to either increase their property portfolios or leave them untouched in 2008, with 95 per cent feeling confident of rental yields over the coming year.

"The social and demographic trends that have been driving the market continue to remain strong with rental demand remaining robust," said Jeremy Law, head of buy to let at the lender.

"If house prices stagnate or fall, we are likely to see demand for rental properties strengthening, leading to improved rental yields."

Increasing numbers of young people choosing to move away from home to attend university and a steady stream of immigrants, as well as unaffordable house prices, have all been cited as reasons behind the strong demand for rental properties. ADNFCR-1219-ID-18392948-ADNFCR

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