The number of landlords investing in family-sized property increased significantly in Q3 2011, research from Paragon shows.
Of those landlords planning to purchase in Q3, 41% are looking to buy semi-detached properties, up from 28% in Q2, and 22% are looking to buy detached houses, up from 9% in Q2.
Paragon says this is evidence of a growing trend for families to look to the private rental sector due to constrained mortgage finance and ongoing economic difficulties.
The firm’s research reveals that 45% of landlords let to families, while 55% let to young couples, 52% let to professionals and 50% let to young singles.
Nigel Terrington, group chief executive at Paragon, says he expects the trend of families relying on the rental sector to remain.
He says: “Young couples and single person households will continue to account for a large proportion of the rental sector, but I think over the next few years we will see more families making use of the flexibility and affordable accommodation that the sector provides.
“With a rising UK population, which is set to grow from 62.3 million today to 65 million in 2016, landlords need to react quickly to a changing tenant demographic as otherwise demand will most certainly exceed supply quite considerably.”