Paragon Bank

Majority of landlords report increasing tenant demand

Some 62% of landlords have reported an increase in tenant demand in Q1 2022, double the figure registered in the same period last year and almost four times higher than Q1 2020 levels, revealed the latest Paragon Bank research.

This is the highest level recorded since 2011, when research agency BVA BDRC started tracking the metric on behalf of the bank.

Of the over 700 landlords surveyed, 34% saw a significant increase in tenant demand in Q1, while 28% reported slight rises.
Perceived decreases in tenant demand, both significant and slight, were recorded by just 3% of landlords, the lowest on record.

Regionally, the central London rental market has seen a significant resurgence, with 84% of landlords operating in the area reporting a rise in tenant demand — a substantial increase on the 12% seen in Q1 2021.

Overall, the inner capital, together with Wales and the South West of England have seen the highest level of tenant demand during the previous three months.

Moray Hulme, mortgage sales director at Paragon Bank, said: “Another record high in the proportion of landlords reporting increasing tenant demand reaffirms the need to increase the supply of homes in the private rented sector. 
“There is evidence of landlords exiting the sector, with many citing increasing tax and regulatory requirements making their lettings business more arduous to operate. 

“While it is clearly important that landlords are taxed appropriately and the sector is regulated to ensure high standards are maintained, we must ensure that BTL remains attractive enough to investors who are vital in supplying the properties needed to meet demand.”

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