Property landlords are optimistic about the rentals market in 2013, with rental demand their top priority.

Investors in residential property in the private rented sector (PRS) are optimistic about the sector in the coming year, research reveals.
 
Around three-quarters (76%) of landlords rate the overall prospects for the PRS in 2013 at between five and eight, with 10 being the highest level of optimism, according to the Q4 research report PRS Trends from buy-to-let lender Paragon Mortgages.
 
The survey also asked landlords what they see as the biggest issues in the year ahead.
 
Top of the list was rental demand (83%) as the most pertinent factor, followed by rent levels (69%) and tenant arrears (46%).
 
A number of residential property investors have one eye on growth over the coming year, with 15% of respondents saying they expect to purchase buy-to-let property.
 
Zoe Rose, head of lettings at Strutt & Parker, believes it "highly likely" that there will be an increase in tenant demand this year for rental properties.
 
Given that buying a property in London is beyond the means of many people, Rose points out that this has a knock-on effect in terms of rising demand for rental properties.
 
"The lower to mid-range properties are in particularly high demand, subject to sensitive pricing and immaculate presentation," she reveals.
 
"The majority of our tenants seek two-bedroom properties (49%) and are aged in their thirties (38%) or forties (30%).  This sector are mid to top-end corporates predominantly from the finance sector (33%) although we foresee a shift towards oil and gas as well as media and the services industry."
 
The survey from Paragon Mortgages shows that almost half (47%) of landlords who are planning to invest in a property this year expect to buy terraced houses and flats or maisonettes.
 
Almost one in three (30%) intend to buy semi-detached houses while 20% have their eyes on multi-unit blocks.
 
The study also shows a prevailing intention among property investors to make improvements to their existing stock, with almost two-thirds (64%) having such plans for the coming year.
 
Perhaps most promisingly of all, the survey reveals that 41% of landlords foresee an increase in tenant demand in 2013, whereas just 6% expect it to decline.
 
Strutt & Parker's in-house rentals expert Zoe Rose sees a similarly encouraging picture emerging, with "well priced and good quality properties" being snapped up by tenants "very quickly".
 
Although stock levels in prime central London are currently higher than demand "we anticipate a re-adjustment as stock left over from 2012 is let or withdrawn from the market", Rose commented.
 
"The peak lettings market is traditionally from March to September and Strutt & Parker anticipate that demand will increase after the early Easter break.
 
"Properties that have been correctly priced, are in excellent decorative order and are in sought after locations fly off the shelf."