Demand from UK residential renters is flattening off, according to research from BM Solutions.
The research shows that 45 per cent of landlords saw no change in demand from tenants in the second quarter compared to the first.
Meanwhile, London was the only area of the UK to see a fall in demand. More than a quarter of all UK landlords saw demand increase in the period.
BM Solutions found that 40 per cent of landlords increased rents by 4 per cent on average.
BM Solutions head Phil Rickards says: “The buy-to-let market has remained resilient following last year’s budget announcements, with landlord rental income and profitability still robust. Although we can see early signs of a plateau in tenant demand, levels are still high with many landlords seeing room to increase rents.
“Landlord confidence has been trending in a downward direction since the last Budget and Autumn statement, yet evidence is starting to show that this trend may have peaked as profitability remains strong and despite the perceived plateau in tenant demand, the early signs look toward a weathering of the challenges that the market faces.”