Record numbers of Landlords reporting rising levels of tenant demand

Record numbers of Landlords reporting rising levels of tenant demand

11:06 AM, 19th October 2021, About a month ago 2

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A record level of nearly 7 out of 10 landlords reported rising tenant demand in the third quarter of the year.

A survey of over 600 landlords by BVA BDRC, carried out on behalf of Paragon Bank, showed, when excluding those who were unsure, 69% of landlords reported increasing levels of demand, with over a third (36%) stating the increase was ‘significant’.

Regionally, net increases of 79% and 74% were reported by landlords in the South West and South East (excluding London), respectively. Although still seeing relatively strong levels of interest from tenants, a lower proportion, 59%, of investors with property in the North East indicated experiencing increased demand.

This figure falls to 54% amongst those managing portfolios in central London, in part due to the region seeing the highest levels of decreasing demand (16%). Despite this, the data suggests that a significant shift is being seen in appetite for central London living as people continue to return to the capital – the same period in 2020 saw a net increase in tenant demand reported by just 16% of Central London landlords, while 58% reported demand was decreasing.

Richard Rowntree, Paragon Bank Managing Director, said: “Landlords have been recording rising levels of tenant demand following the first lockdown, which reflects the shift in housing need created by the virus. The third quarter of the year is usually a busy one for the private rented sector (PRS) with graduates starting new jobs, the beginning of the academic year and people turning to housing once the holiday season is over.

“With this seasonal demand added to already high levels of tenant demand, we are beginning to see a shortage of property in certain parts of the PRS, which is leading to rental inflation. The sector needs to expand to meet these exceptional levels of tenant needs.

“Recognising this, lenders can assist investors with products and service that supports them in responding to the needs a diverse and growing mix of tenants.”



Comments

by Judith Wordsworth

12:30 PM, 20th October 2021, About a month ago

Likely because of the number of landlords are getting out. Out of my small portfolio I sold 1 last year and 1 this year.
It's just not worth the hassle anymore. Actually not been worth the hassle for a few years. I earnt nothing from my rental properties in the last 3 years and owed £1000's on one.
Will be possibly looking to go into buy, do up and sell. Will earn more per unit than BTL and without having to deal with tenants or Councils.
I've always done up rentals to a high standard, jumped immediately whenever a tenant has a problem, been screwed over by non-payers more than once, tenant lifestyle mould and now legislation is taking the mickey of the PRS plus the prospect of lifetime tenancies and EPC properties which are fine to live in if you live there, but cannot be lived in by tenants yet will be impossible to upgrade, don't even ask.

by Mick Roberts

15:55 PM, 20th October 2021, About a month ago

Reply to the comment left by Judith Wordsworth at 20/10/2021 - 12:30
I concur.

Nowhere near worth the hassle if u in a Selective Licensing area & deal with Benefit tenants.

And the latest legislation attacks on Landlords for me are making me wealthy as my tenants can't move any more, I have no voids, & I'm already charging them less than £200pm on market rent. My point is the new rules keep coming in are making it nigh on impossible for Benefit tenants to move.

Ha ha Don't even ask. Yes u right, EPC's to a C only if u a Landlord. Cause u gonna' spend 10 to 30k on a house u no longer want. And rip the house out to see if u can find space to insulate everything & the £10,000 heat pump which surely won't be tried to be nicked sitting outside.


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