Landlords report strongest rising tenant demand in outer London and East Midlands
Around 91% of landlords with property in Outer London have reported rising tenant demand, followed by 86% of East Midlands’ landlords.
According to a survey of 983 landlords by mortgage lenders Paragon, Outer London and the East Midlands saw the highest rate of rising demand, with Wales coming next as approximately 82% of landlords reported growing tenant demand.
The weakest region for tenant demand was North East at 69%, with 6% stating that demand decreased during the quarter.
Around 67% of landlords across Britain reported growing levels of tenant demand in the second quarter, which is in line with the first quarter.
Only 2% of landlords reported falling levels of demand, a decrease from 4% last quarter.
The report added that the strong demand was leading to rent increases with 87% of landlords saying rental prices were growing in their local market.
Rent increases on the way
Just over half, 51%, said they planned to increase their rents across their portfolios in the next six months. Around 94% of landlords in Wales said they would increase rent, followed by North East at 92%, Yorkshire and the Humber and East Midlands at 91%.
Nearly three quarters of landlords cited inflation as a factor in increasing rent in the next six months, along with the rising costs of running a property.
Approximately 59% said rises were to align with local market rents.
Paragon Bank’s commercial director of mortgages Louisa Sedgwick said: “Tenant demand shows no signs of slowing down in many parts of the country. With supply not growing quickly enough to keep pace, we are seeing rental inflation and that is likely to continue until we see demand more in balance with supply.”