The proportion of landlords who rent their properties to immigrants from EU countries is continuing to soar, totalling 28% in September, according to figures from Mortgage Trust.

The number of landlords which let to the immigration market has risen substantially from 4.6% in September 2006 and from 17% in May 2007. Tenant demand for private rented accommodation is strong, with the influx of people from EU accession states such as Poland and the Czech Republic being a major contributory factor.

According to figures from the Department for Work and Pensions (DWP), East Anglia has the highest number of registered immigrant workers, followed by the West Midlands, London and the North East. Year-on-year rental increases for these areas are 11.5%, 16.2%, 19.3%and 14.4% respectively.

Mortgage Trusts findings coincide with the Office for National Statistics raising its immigration projections. Official estimates are for a long-term net migration inflow of +190,000 each year, up from +145,000 in the previous projections.

John Heron, Mortgage Trust managing director, said: “As competition for rented homes grows, not just from migrants, but from students and young professionals too, we can expect landlords yields and overall returns to rise.”