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In fact, research from buy-to-let specialist lender Paragon Mortgages found that just 5 per cent of landlords believe tenant demand would decline over the period. The remaining 36 per cent believe demand will remain stable.

This is an improvement on the results of the November report, when 38 per cent of landlords said they expected tenant demand would grow over the subsequent 12 months. Meanwhile, 47 per cent gave the same answer when surveyed in February 2008.

John Heron, Paragon Mortgages managing director, said: "We have consistently said that buy-to-let has strong counter-cyclical qualities and we are now seeing concrete evidence of this. Potential home buyers are postponing purchasing decisions because they either feel uneasy about the current market or they simply can’t get a mortgage, so they are renting.

"Combined with strong demand from students, immigrants and people that choose to rent as a lifestyle choice, this is putting an increased strain on the private rented sector’s stock. It is likely we will see void periods continue to fall over the coming months and yields continuing to rise as demand for rented accommodation grows."

According to the Trends Report, which surveyed over 200 landlords, the average void period per year is at its lowest level since the first quarter of 2005 at 2.7 weeks and has been falling since the second quarter of last year.

Meanwhile, the latest version of Paragon’s monthly Buy-to-Let Index showed that yields in May hit their highest level since February 2006.

Heron added: "The private rented sector is playing an important role in filling the UK’s housing gap in the current market. With fewer properties being constructed as developers cut back, demand for rented property is likely to be strong for the foreseeable future."