Demand for rental property is nearly four times higher than just before the start of the pandemic, latest research reveals.

Mortgage lender Paragon says 62% of landlords polled by research agency BVA BDRC on its behalf reported increasing tenant demand in recent months.

This is compared to just 16% during the first three months of 2020 just before the first Covid lockdown.

Significant increases

Some 700 landlords advertising properties to rent were asked to assess tenant demand over the previous three months and a ‘significant increase’ was seen by 34% of respondents, with a further 28% reporting some increases.

Perceived decreases in tenant demand, both significant and slight, were recorded by just 3% of landlords, the lowest on record.

The rental markets seeing the greatest increases include within inner London where 84% of landlords operating in the inner capital along with the South West of England and Wales.

Moray Hulme, (pictured) Mortgage Sales Director for Paragon Bank says: “Another record high in the proportion of landlords reporting increasing tenant demand reaffirms the need to increase the supply of homes in the private rented sector.

“There is evidence of landlords exiting the sector with many citing increasing tax and regulatory requirements making their lettings business more arduous to operate.

“While it is clearly important that landlords are taxed appropriately and the sector is regulated to ensure high standards are maintained, we must ensure that buy-to-let remains attractive enough to investors who are vital in supplying the properties needed to meet demand.”

3 COMMENTS

  1. No sane LL would buy now.
    Unless the property was EPC C status.
    LL are Offloading dud sub C status properties

    LL are getting out of the game or converting to non-AST lettings.

    Paragon is deluding itself if it thinks LL will further invest in AST lettings.

    No surprise LL are experiencing increased demand from ever desperate tenants for the reducing supply of rental properties.

    Apparently sealed bids as I predicted years ago are starting to occur from tenants in an effort to secure a tenancy.

    The tenant no longer holds the whip hand.

    Things will become even more difficult for tenants when the roughly 648000 sub EPC C status rental properties are unlettable in 2025 if EPC C status requirements are introduced.

    That is about 2 million tenants that would be homeless if new tenancies occur.

    S13 rent increases will be the only way to increase rents or render the property unlettable.

    LL will have a real issue if any aspect of a tenancy requires a new TA.

    Many savvy tenants will blackmail their LL into rent reductions.

    If LL refuse then tenant surrenders tenancy leaving LL unable to let.

    Selling or bankruptcy will be the only options
    for the LL.

    Unless of course the LL was able to sustain improving the rental property to EPC C status.

    CAN’T see that be financially viable for most LL.

  2. Got to find renters on some sort of benefit to then get the epc work done for free by the tenant … Ie, one of the government green deals, assuming they are not all axed…

LEAVE A REPLY

Please enter your comment!
Please enter your name here