Landlords who took part in the specialist lender’s quarterly Private Rented Trends Survey also found that 43% of landlords expect demand to grow in the 12 months.
Private investor landlords are also optimistic about demand levels with 48% saying that they expect demand to grow or boom, compared with 41% of professional landlords.
John Heron, director of Mortgages, said: “Tenant demand has remained high for a number of years and this is unlikely to change in the foreseeable future.
“Private rented sector housing is the only growing housing tenure in the UK and increasing pressure is being put on the sector.
“As professional landlords remain constrained by limited equity and access to funding, private investor landlords will drive growth in the sector, growth that is desperately needed to meet the ever increasing demand from tenants.”
Paragon also found that 13% of those surveyed are expecting to buy a further rental property in the second quarter.
Of those looking to buy almost half (41%) are planning to buy terraced houses, 30% are looking to buy semi-detached houses and a further 30% are looking to buy flats and maisonettes.