Landlords are expecting tenant demand to continue to remain high in 2012, Paragon has reported.

56% of the landlords who took part in Paragon’s quarterly survey said that they expect tenant demand to either grow or boom in the New Year, which compares to 45% who were asked the same question at the end of 2010. Only 6% of those questioned thought that tenant demand would decline in 2012.

When asked whether they thought rental income would increase during the next 12 months, 45% of landlords surveyed said that levels will increase, whereas 53% said that it would remain stable – only 2% said that it would decrease.

Over the coming year, two thirds of landlords said that they thought arrears levels would stay stable and 20% said that they thought arrears would rise moderately.

Nigel Terrington , chief executive of Paragon Group, said: “It is no surprise that landlords are expecting a healthy level of tenant demand in the New Year