Tenant demand reaches record high level
The proportion of landlords saying that they are seeing a rise in tenant demand is at an all-time high, according to Paragon Bank.
According to the buy-to-let lender, nearly seven out of 10 landlords reported rising tenant demand in the third quarter of the year – a record level.
Of those who have seen demand jump, a third said the increase was ‘significant’.
Landlords in the South West and South East (excluding London) saw the strongest rises in tenant demand, while a a lower proportion, 59%, of investors with property in the North East said they’d experienced increased demand.
The figure fell to 54% amongst those managing portfolios in central London.
Richard Rowntree, Paragon Bank’s managing director, said: “Landlords have been recording rising levels of tenant demand following the first lockdown, which reflects the shift in housing need created by the virus. The third quarter of the year is usually a busy one for the private rented sector (PRS) with graduates starting new jobs, the beginning of the academic year and people turning to housing once the holiday season is over.
“With this seasonal demand added to already high levels of tenant demand, we are beginning to see a shortage of property in certain parts of the PRS, which is leading to rental inflation. The sector needs to expand to meet these exceptional levels of tenant needs.”