During the first quarter of 2011, tenant demand has increased a massive 51%, compared to the last quarter of 2010. Tenant demand is measured by the time it takes for landlords to let their property, with the average property let within 13 days compared with 17 days a year ago.
Interestingly, the number of small landlords has increased with those owning 1-3 properties making up 40% of the buy-to-let market. This would suggest that more landlords are trying to enter the market to meet demand.
The number of properties available was still not enough to meet demand in 2010, so with the news that tenant demand is going up by such a rapid figure, competition for homes will be even stronger. Whilst this may be good news for landlords, it makes life much harder for tenants trying to find somewhere to live. Most landlords we speak to would like to increase the size of the portfolio but are restricted by the size of deposit required by lenders and the fact that prices have stagnated so there is no capital growth in their portfolio.