Research carried out by the National Landlords Association (NLA) shows that tenant demand remains strong, with four in 10 landlords reporting an increase in the areas where they operate.

The NLA found that tenant demand continues to be largely seen as either stable or increasing in the areas where they operate in the last three months, although there are variations by region.

While one in five are uncertain about demand in the areas they own property, on average 40% of landlords have seen an increase.

The East of England saw the biggest net growth in tenant demand with a 48% increase. This was closely followed by the South West (45%) and the South East and Outer London – with 41% and 40% respectively.

The research also found that on average just 6% 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% decline in demand, closely followed by 12% in Wales and Yorkshire and 11% in the North West.

Carolyn Uphill, chairman at the NLA, said: “These figures demonstrate just how important the private rented sector is in housing a growing number of people. Our research indicates that 5% of landlords will sell up following the Government’s plans to remove mortgage interest relief for landlords, which could affect some 600,000 tenancies.”