High demand for rental residential property is fuelling the buy-to-let property market in the first quarter, according to the National Association of Estate Agents (NAEA).

Despite many buy-to-let mortgage holders opting to increase the amount they charge for rent in response to recent interest rate hikes, few appear to have much difficulty in finding tenants for their property. The average time-period between tenancies fell from 14 days in 2006 to 13 for the first part of 2007, said the NAEA.

Jan Bartlett of the NAEA said that tenants appeared more willing than ever to pay high rents for their accommodation.

“Increases in rents is a reflection of interest rate rises, but it has not affected the market”, she said. “Properties are being let at their full asking price, unlike 18 months ago when we often had to negotiate rents down.
“Economic and immigration factors continue to fuel demand, and we have also seen an increase in the number of young professionals relocating for employment, which fuels the rental market as people often rent before they buy when relocating.”