Insurance News Archive

Buy to let insurance: Tenant demand boosts landlords' confidence

Posted by Jonathan Walker

Almost three times as many buy to let insurance customers reported that tenant demand was rising than those who claim to have seen it falling in the second quarter of 2010, new research has found.

According to Paragon Mortgages' latest private rental Trends Report has revealed that 29 per cent of buy to let insurance policyholders noted an increase in tenant demand during the period, with just 10 per cent witnessing a decline.

Going forward, the study found that landlords expect demand for rental property to strengthen considerable, with more than a third of buy to let insurance customers predicting higher demand in 12 months' time.

Nigel Terrington, chief executive of Paragon Group, said: "Strong tenant demand is great news for landlords, but will lead to rental inflation for tenants unless the private rented sector is able to expand to meet this demand."

Earlier this month, statistics from Countrywide suggested that, in June, buy to let insurance customers saw a record number of 18,000 tenants registering for accommodation – up 22 per cent from the previous month.

21 Jul 2010