Ian Potter, managing director of The Association of Residential Letting Agents (ARLA) claims strong demand will be matched by improved choice in 2014 making for a dynamic rental market.

He said: “Renting is still a crucial backstop for those who can’t afford to buy or are biding their time, especially in London and the south east.

“As house prices recover we could see more sales and more turnover of properties in the market, which should keep stock levels stable and inject a bit more choice into the market.

“Demand might not increase as rapidly as it has been, but there is unlikely to be any major let up on rent levels. We anticipate plenty of churn in the buy-to-let market with a combination of selling up and buying in. Resurgent sales and better access to finance could see accidental landlords looking to release equity, new investors taking advantage of favourable rates (especially before prices go up further) and reluctant tenants switching from renting to ownership.

“However, as a note of caution, there is a chance that the withdrawal of Funding for Lending support for mortgages a year earlier than expected could see fewer able to exit the PRS before the end of 2014.

“Many will still turn to renting and we predict an increase in the length of the average tenancy in 2014 as renting in the long run becomes the new norm.

“However, as the economic recovery takes hold, the proportion of tenants who rely on rent as an affordable alternative to home ownership or who entered the rental sector due to repossession or enforced downsizing, will decrease. Instead we expect to see more and more people ‘content to rent’ because they actively prefer it and intend to sit it out until the economy is back to full strength.”