You are here: Home - News -

Landlords reporting tenant demand hitting record high – Paragon

  • 10/11/2023
  • 0
Landlords reporting tenant demand hitting record high – Paragon
The share of landlords noting increased tenant demand reached 71 per cent in Q3, a record high.

Research conducted by Paragon Bank found this was higher than the 67 per cent of landlords witnessing a rise in tenant demand in the previous quarter. Only three per cent of landlords said tenant demand had dropped. 

The West Midlands was reported to have the strongest level of appetite for rental properties, with 76 per cent of landlords in the region seeing an increase. This was followed by Wales at 75 per cent, the South East at 74 per cent and the East Midlands at 73 per cent. 

The weakest demand was recorded among landlords in the North East at 65 per cent and the East of England at 61 per cent. 


Rents on the rise 

Landlords also reported a rise in rental prices, as 87 per cent said this was a trend in the areas they let properties in. This was a similar sentiment to the previous quarter. 

Some 70 per cent of landlords said they had put rents up within the last 12 months, up from 65 per cent in Q2. A further 54 per cent said they were planning to raise rents in the next three months, which was three per cent higher than the previous quarter. 

On average, landlords planning to raise their rents will do so by 8.4 per cent. 

When asked why they were increasing rent, two thirds of landlords said they were covering higher running costs while 63 per cent they were aligning with the local market. Just 48 per cent of those planning to increase rents said they were doing so to cover higher mortgage costs. 

Richard Rowntree, managing director for mortgages for Paragon Bank, said: “During the first two quarters of the year we saw record levels of tenant demand reported by landlords. For this to be surpassed in Q3 highlights how the imbalance between the supply of rented homes and demand from renters is not improving. This reduces choice and increases competition for renters, while fuelling rental inflation, a scenario that often impacts the most vulnerable to the greatest degree.  

“With social housing unable to meet this demand and home ownership aspirations hindered by cost of living pressures, further investment in the private rental sector cannot be delayed.” 

There are 0 Comment(s)

You may also be interested in