According to a leading buy-to-let mortgage marketplace for investors, borrowers and brokers, there has been a major increase in prospective tenants looking for new homes, and will continue to rise this year.

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Statistics based on recent lenders’ mortgage lending activity, shows that landlords are only too aware of the significantly weaker economy, as the number of people confident enough to buy their own homes is dropping daily, which in turn reflects the increase in rental demand.

There is no doubt that over the next four or five months it will be extremely positive for the private rented sector, as the data points toward a continual increase in renters looking for homes.

John Goodall, CEO of the BTL mortgage marketplace, said “ [Buy-to-let] Mortgage borrowing increased in May and we can only hope that we have now turned the corner and will incrementally see demand increase month-on-month.

“It will be more challenging for many people to get mortgages however, particularly if they have been furloughed or lost their jobs. This is reflected in the dire situation where mortgage approvals were only a tenth of what they were in February.

“What this does mean is that the demand for private rental property is likely to increase as the year progresses.”

Goodall added: “Those who would ordinarily have bought a property may well be struggling to do so and we have already seen demand from landlords increase sharply in the last month.”