According to research from Paragon, which surveyed around 700 landlords, 65 per cent of respondents have reported a net increase in tenant demand over the past three months.
This is up from 62 per cent reported in the first quarter of the year.
Within the figure, 39 per cent of landlords said tenant demand had “increased significantly”, which the lender said was the highest since the metric was tracked in 2011.
No landlords said demand had decreased significantly, which is a survey first.
Regionally, tenant demand growth was significant in South West, Wales and outer London. Net increases in tenant demand was 88 per cent in South West, and 84 per cent in Wales and outer London respectively.
Significant rise in tenant demands since pandemic
The report added that there had been a “consistent and significant rise” in tenant demand since the low net increase of 14 per cent in Q2 2020.
Over 2021, tenant demand rose 31 per cent in Q1 and 56 per cent in Q4. In 2022, net increase tenant demand has been over 60 per cent.
Moray Hulme (pictured), mortgage sales director for Paragon Bank, 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.”
