Rental demand 'to remain strong'

Demand for homes to rent in the UK will keep on rising in 2011, it has been claimed, news which could be of interest to holders of private wealth invested in the buy-to-let market.

Property Hawk editor Chris Horne said first-time buyers will continue to find it difficult to get on to the housing ladder, which will force up the number of people looking to rent.

Others are deferring their first house purchase until after the recession is over, he commented.

"There is evidence that landlords are looking to increase the number of properties that they own, but that is only going to increase the rental stock very slowly over the next year or so," Mr Horne added.

The latest figures from the Rent Index show average monthly charges increased by almost two per cent in the last year, while a recent Upad survey revealed 60 per cent of residential landlords claimed they were more confident about the state of the property market in December than they had been the previous month.ADNFCR-2318-ID-800306676-ADNFCR