The rental market in 2012 will continue to forge ahead as demand stays strong in many areas, the National Federation of Property Professionals has predicted.

Chief executive Peter Bolton-King said the majority of members are still reporting a shortage of rental property and this supply and demand imbalance is pushing up rents, meaning greater yields for landlords.

With mortgage finance expected to remain restricted in 2012, Mr Bolton-King said the rental market is expected to “continue to move forward”.

He added: “All of the research that has been done shows that over the next ten-plus years the growth in the private rented sector is going to continue,” as the number of households in the UK continues to rise in a way the owner-occupier sector cannot support.

The advice from NFOPP comes after Malcolm Harrison, spokesman for the Tenancy Deposit Scheme, advised landlords that they can no longer take a national view of the rental market.

Stark regional variations mean it is essential landlords view the investment prospects of the local area in which they plan to invest, he advised.

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