Almost half of the landlords (44%) surveyed in Paragon Mortgages latest Private Rented Sector Trends survey for the first quarter of 2012 report that tenant demand was continuing to grow.

The results of the quarterly survey carried out by the specialist buy-to-let lender also reveal that just 7% of landlords reported that tenant demand in Q1 had declined and 46% said that levels remained stable.

Professional landlords were more likely than smaller-scale landlords to think that demand was growing – 46% compared to 37%.

Landlords also commented on their expectations for tenant demand in the next 12 months, with more than half (53%) believing that demand will continue to grow while 36% think that demand will stabilise.

Landlords were also asked about the most prolific tenant types they let to across their portfolio. The most popular household type were for young singles with 35% of landlords letting to this group, followed by young couples (24%) and families with children (24%).

Commenting on the data, Nigel Terrington, Chief Executive of Paragon Group, said: “Levels of tenant demand have for the most part remained steady throughout the first quarter of the year. This shows the continuing importance of the private rented sector as the tenure of choice for many people.”