According to Paragon’s PRS Trends report, where almost 800 landlords were asked about demands for their lets, 43% said that tenant demand was strong and 40% said it was very strong.
Only 1% of landlords said demand was weak, and 12% said that demand was average.
The highest proportion of tenants experiencing strong demand was in the South West, where 54% said that demand was very strong and 30% said it was quite strong.
Similar levels were reported in the North East, with 51% reporting very strong tenant demand and an additional 36% saying demand was strong.
Yorkshire and the Humber had the lowest level of tenant demand, with 49% saying it was quite strong and 31% saying it was very strong.
This is continuing a growth on the prior quarter, in which six in 10 landlords reported high tenant demand in Q4.
Richard Rowntree, managing director for mortgages at Paragon Bank, said: “Although recent reports have pointed to an improvement in stock levels within the private rented sector, this research is evidence that investment in rented homes is still very much needed, as demand still outweighs supply.
“Making more homes available for tenants provides them with greater choice and is one of the most effective ways of keeping rental inflation at affordable levels.”
He added: “We can only see tenant demand levels growing, fuelled by forecast population growth and household formation over the next decade. Rental housing supply needs to keep pace to ensure those who want or need to rent a home have a choice of property at a reasonable price.”
