Tenant demand at all-time high, landlords say
The proportion of landlords reporting growing tenant demand has reached a high for the second time this year.
According to research from Paragon, which surveyed around 700 landlords, 65% reported a net increase in tenant demand over the past three months.
This is up from 62% reported in the first quarter of the year.
Within the figure, 39% of landlords said tenant demand had “increased significantly”, which the lender noted was the highest since it started tracking this back in 2011.
No landlords said demand had decreased significantly, which is a survey first.
Regionally, tenant demand growth was significant in South West, Wales and outer London. Net increases in tenant demand was 88% in the South West, and 84% in Wales and outer London respectively.
Significant rise in tenant demands since pandemic
The report revealed there had been a “consistent and significant rise” in tenant demand since the low net increase of 14% in Q2 2020.
Over 2021, tenant demand rose 31% in Q1 and 56% in Q4. In 2022, net increase tenant demand has been over 60%.
Moray Hulme, mortgage sales director for Paragon Bank, said: “We’ve seen demand for privately rented homes climb consistently since the pandemic. The fact that the all-time high we reported earlier this year has now been surpassed supports our view that the private rented sector remains an essential component of UK housing provision.
“Renting appeals to people of different demographics and from all walks of life but the flexibility and relative affordability of rented accommodation means its value is even more apparent at what is an economically challenging time for many.”