10:38 AM, 9th May 2023, About 7 months ago 4
Tenant demand has reached an all-time high, according to new research.
A survey of 700 landlords by Paragon Bank reveals that 67% of landlords experienced increased tenant demand during the first quarter of this year.
Landlords in the East of England saw the highest levels of tenant demand with nine in 10 seeing an increase.
Richard Rowntree, Paragon’s managing director for mortgages, said: “The fact that we’ve seen another high in the proportion of landlords who have told us that they’ve experienced an increase in tenant demand reinforces we need more private rented sector homes, not less.
“An important element of this is policy that strikes the right balance between driving up standards and providing tenants with protection while not acting as a barrier to investment.”
He added: “Failure to address this will further drive rental inflation and increase competition for rented homes at a time when affordable housing is as important as ever.”
In response to rising demand, rents have also increased with 85% of landlords saying that rents were currently rising in the areas where they let property, with more than half (52%) planning to increase rents across their own portfolio in the next six months.
Of those looking to increase rents, the average planned increase was 8.2%.
According to the survey, the most common reason for raising rent is covering the increased cost of running a property (73%), and aligning with local market rates (60%).
When asked about current levels of tenant demand, 94% of landlords in the South West said they were experiencing ‘strong’ or ‘very strong’ demand for their properties.
More than 90% of landlords in Wales (92%), West Midlands (92%) and the South-East (91%) said demand was currently at positive levels.
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