Landlords with properties in central London saw the highest levels of tenant demand across England and Wales in the last quarter of 2022.
After falling out of favour during the Covid pandemic, the appeal of centrally located properties in the capital is growing, according to Paragon Bank research, which found that 94% of landlords with investments in central London reported strong levels of tenant demand. In the second quarter of 2020, just 12% of these landlords saw increased demand during the previous three months but this figure was up to 90% by the end of last year.
The survey of more than 750 landlords shows that the overall proportion of landlords reporting increased demand during the previous three months has remained at the record high level seen in Q3 2022.
Other popular regions include the East of England and Wales, both with 92% strong demand, followed by the North East of England where 90% of landlords report that demand is strong.
Richard Rowntree, MD for mortgages at Paragon Bank, says while the trend towards home working and an increased desire for access to green space was more evident among owner occupiers and probably overstated in its effect on the rental market, it is interesting to see the current boom in Central London.
“We see that the overall record high level of increased tenant demand reported in Q3 2022 continued into the final quarter of last year,” he adds. “This is unsurprising given the pressure on household finances and the relative affordability of rented homes, reinforcing the need for an environment that encourages investment in the private rented sector.”