This is double that of the same period a year ago, and almost four times the level reported in Q1 2020 when only 16 per cent of landlords felt that demand was growing, according to a survey of 700 landlords by Paragon Bank.
A ‘significant increase’ was seen by 34 per cent of respondents, with a further 28 per cent reporting slight increases. Perceived decreases in tenant demand, both significant and slight, were recorded by just three per cent of landlords, the lowest on record.
Regionally, the results show a resurgence of the Central London rental market. Increasing tenant demand was reported by 84 per cent of landlords operating in the inner part of the capital, a prolific increase on the 12 per cent seen in Q1 2021. This places Central London alongside the South West and Wales as the regions seeing the highest levels of increasing tenant demand during the previous three months.
The data also confirms that the number of people seeking privately rented homes has grown consistently throughout the course of the Covid pandemic. This has continued into 2022 after growing to the highest level recorded since 2011, when research agency BVA BDRC started tracking the metric.
Moray Hulme, mortgage sales director for 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 buy-to-let remains attractive enough to investors who are vital in supplying the properties needed to meet demand.”
