Demand for property to rent in the UK is likely to remain strong in the months ahead, despite something of a 'metropolitan split' emerging at the moment, according to the Residential Landlords Association (RLA).

Alan Ward, chairman of the RLA, said, there is no indication of tenant demand slowing as long as the supply side is falling "well short".

"It does tend to sustain the rental levels, but it depends where you are. We have got this metropolitan split with the central London market compared to the rest of the country. In certain parts of the country, demand is perhaps slack," he noted.

His comments follow the publication of a report by Paragon Mortgages, which showed that more than a fifth of landlords said they expect to purchase additional properties in the next 12 months, while just eight per cent are considering reducing their stock.

Overall, 57 per cent of landlords rated the prospects for the private rented sector in the next 12 months as very good or good.

Mr Ward also pointed to the Michael Ball report from last week that talked about disinvestment and the true return that landlords are making, noting that this is of 'real concern' because most landlords seem to discount the true cost of running their portfolios.

"But when Mr Ball speaks about disinvestment, it is not necessarily about selling the properties, but about the availability of cash to sustain and maintain the quality of the portfolio," Mr Ward added.

Source: www.zoopla.co.uk

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