Buy to Let

London landlords see surge in rental demand

Christina Hoghton
Written By:
Christina Hoghton

The London rental market has rebounded sharply after being hit hard during the covid pandemic

Landlords in London have reported an increase in rental demand, according to Paragon Bank.

The buy-to-let lender said that the proportion of landlords operating in Outer London who have reported increasing tenant demand has surged since the previous quarter.

In the second quarter of this year 85% of landlords who let property in Outer London said they’d seen an rise in tenant demand compared to the previous three months.

The survey also revealed that the South West was the region with the highest proportion of landlords (90%) reporting ‘strong’ demand.

Falling void periods

Landlords in Outer London have also seen a stark fall in void periods.

According to a survey of over 700 landlords by BVA BDRC, the incidence of voids has fallen dramatically, from 35% of landlords having experienced an empty property in the last three months when asked last year to just 21% today.

Richard Rowntree, mortgages managing director for Paragon Bank said: “We know that the private rental market in London was hit particularly hard by the Covid pandemic but has rebounded strongly since and these latest figures provide further evidence of this.

“As one of the world’s greatest cities, London is extremely dynamic, constantly evolving as a diverse mix of people come and go, calling it home as they study, work, travel or raise families. This is why it is important for the capital to have a thriving private rented sector, enabling people to benefit from the flexibility that rented homes provide.”