Tenant Demand at All-Time High

New industry research has found that landlords are reporting an all-time high increase in tenant demand

New research conducted on behalf of Paragon Bank - who offer mortgages to landlords, has found that they are reporting an all-time high increase in tenant demand.

After surveying over 700 landlords, the international consumer and business insight consultancy BVA BDRC, found that a net increase in tenant demand during the past three months was seen by 65% of respondents.

This figure surpasses the previous all-time high of 62% recorded during the first quarter of 2022, marking a steady and significant rise in tenant demand since the low net increase of 14% was recorded back in the second quarter of 2020.

Breaking down the net increase also indicates that the 39% of landlords who reported that tenant demand had ‘increased significantly’, was the highest proportion since the metric was first tracked in 2011. Only 1% of landlords felt that tenant demand had ‘decreased slightly’, while none said it had ‘decreased significantly’.

Mortgage Sales Director for Paragon Bank, Moray Hulme 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.”

Viewing the research findings at a regional level, a strong tenant demand has been reported in all areas throughout England and Wales. Notably however, a trend emerges in the South West, Wales and Outer London, with landlords in each of these regions finding strong tenant demand during each quarter so far in 2022. Net increases in tenant demand were recorded by 88% of landlords in the South West and by 84% of landlords in both Outer London and Wales in the third quarter of 2022.

The lack of rental accommodation has reached boiling point in other parts of the country, where frustrated students and staff from Durham University have staged a protest about the "shambolic and broken" housing market in the city.

This comes after weeks of panic saw hundreds of students sleeping on the street to try and secure accommodation for the 2023/24 academic year.

Protestors demanded action from the university and county council to ensure enough high-quality and affordable housing for students and full-time residents in the city.

If you're interested in letting your property, please contact your local David Andrew Lettings Manager today for a FREE market appraisal:- Archway: 020-7619-3750, Highbury: 020-7354-9111, Stroud Green: 020-7281-2000 or email info@davidandrew.co.uk