Around 40 per cent of landlords are reporting an increase in tenant demand in their area in the past three months.
A survey by the National Landlords Association shows that the East of England saw the biggest net growth in tenant demand with a 48 per cent increase.
This was closely followed by the South West with a 45 per cent increase, and the South East and Outer London with 41 and 40 per cent respectively.
The research also found that on average just six per cent of landlords reported a decrease in tenant demand in the last three months.
Landlords in the North East reported the largest net decrease in tenant demand of all the regions with a 15 per cent decline in demand, closely followed by 12 per cent in Wales and Yorkshire and 11 per cent in the North West.
“Our research indicates that five per cent of landlords will sell up following the government’s plans to remove mortgage interest relief for landlords, which could affect some 600,000 tenancies” claims Carolyn Uphill, NLA chairman.
“The government’s planned changes, which will be phased over a period of years, gives landlords effected time to review their finances, but some will still be forced to sell or trade at a loss which is unsustainable and the projected impact will mean that ultimately renters will lose out as a dwindling stock drives up prices and competition for homes.”