Central London landlords see strongest demand from tenants
Landlords with properties in Central London have the strongest tenant demand in England and Wales.
A new survey of 750 landlords has revealed that 94% of those in Central London said they had strong levels of tenant demand. The remaining 6% said levels of demand had stayed stable.
The report from mortgage lender Paragon also showed that the appeal of properties in the capital has been increasing, reversing the pandemic trend where properties outside of London grew in popularity.
The survey noted that, in the second quarter of 2020, only 12% of Central London landlords had reported heightened tenant demand. This compares to 90% in Q4 2022.
Other regions have also reported strong tenant demand, with around 92% of landlords in the East of England and Wales highlighting this trend, followed by 90% of landlords in North East.
‘Record level of increased tenant demand’
Richard Rowntree, managing director for mortgages at Paragon Bank, said: “A lot was said about the impact of the pandemic on the Central London rental market, with a number of factors such as the rise in home working and increased desire for access to green space leading to demand for centrally located homes apparently falling off a cliff.
“While I feel that this trend was more evident amongst owner occupiers and overstated in terms of the effect on the rental market, it is nevertheless interesting to see landlords in Central London report the highest levels of tenant demand currently and during the previous three months.”
He continued: “In addition, we see that the overall record high level of increased tenant demand reported in Q3 2022 continued into the final quarter of last year. This is unsurprising given the pressure on household finances and the relative affordability of rented homes, reinforcing the need for an environment that encourages investment in the private rented sector.”
Coupled with this increased demand is increased outlay on rent. Last week, YourMoney.com reported that the average asking rent for new tenants both inside and outside of London reached new record highs.