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

The NLA found that while one in five landlords 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 – with 45% increase – 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 past 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.

NLA chairman Carolyn Uphill 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.

“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.”