Buy-to-let landlords believe that tenant demand is rising rapidly in the UK.

New research from Paragon shows that a third of landlords have this view of the market.

This is up on the figure recorded at the end of 2007, when over a quarter of respondents felt that tenant demand was rising rapidly.

John Heron, director of mortgages at Paragon, said that the increased demand is down to the effects of the global credit crunch.

"Our landlords are optimistic about the level of demand from tenants. Young people are choosing to remain in rented accommodation for longer due to the uncertain housing market outlook," he commented.

"This is definitely placing pressure on the stock of private rented homes available.

"Despite much hype to the contrary, professional landlords enter into their investments with a long-term outlook and they will continue to provide a home for these people," added Mr Heron.