Almost four in 10 landlords believe tenant demand is increasing, the latest data from BDRC Continental has revealed.

The quarterly landlord panel report, commissioned by Paragon, shows that of the 1,097 landlords who took part in the Q1 survey, 39% view tenant demand as increasing. Over a third (36%) say demand is stable and just 7% said in their experience demand from tenants is decreasing.

The Private Rented Sector (PRS) provides a home for many for whom home ownership is not a realistic ambition today including some 24% of private sector tenants on housing benefit, those in full-time education, migrant workers and first-jobbers. With the social rented sector under renewed pressure it is no surprise that landlords report high levels of demand. So whilst policies that expand home ownership can be welcomed, the positive role of the PRS in providing a home to those who cannot or do not wish to buy should be valued and recognised.

Interestingly, the survey also reported that 54% of landlords agree the PRS is compensating for the decline in the social housing sector, an argument which often appears to get overlooked by Government. Landlords are quite justified in feeling this way too, with stock in this sector having fallen for a number of years. In 2015 English Housing Survey data showed that social housing accounted for 17.1% of all housing stock, having fallen from 20% in 2001. The biggest losses have been felt in local authority housing which now accounts for just 7% of stock, whereas housing association stock is 10.1% - having grown from 6.7% in 2001.

So, with increasing demands on the PRS we are likely, despite the current dip in landlord confidence following recent Government interventions, to continue to see landlords investing in their portfolios – it just may be at a slower rate.