Research revealed increasing tenant demand after the peak of the COVID-19 pandemic
More than nine in 10, or 94%, of landlords with properties in Central London reported strong levels of tenant demand, according to specialist buy-to-let lender Paragon Bank.
Research undertaken by BVA BDRC on behalf of Paragon Bank found that landlords with properties in Central London reported the highest levels of tenant demand across England and Wales during the final quarter of 2022.
The survey of over 750 landlords also showed that the overall proportion of landlords reporting increased demand during the last three months of 2022 has remained at the record high level seen in Q3 2022, when 65% of landlords reported that demand had increased.
These findings, Paragon noted, suggest that the appeal of properties centrally located within the capital has been growing for some time since falling out of favour during the COVID-19 pandemic. The lender pointed out that in the second quarter of 2020, increased tenant demand during the previous three months was reported by just 12% of Central London landlords.
Paragon said other regions experiencing strong levels of tenant demand currently include the East of England and Wales, both with 92% strong demand, followed by the North East of England where nine in 10 (90%) landlords report that demand is strong.
“A lot was said about the impact of the pandemic on the Central London rental market, with a number of factors such as the rise in home working and increased desire for access to green space leading to demand for centrally located homes apparently falling off a cliff,” Richard Rowntree (pictured), managing director for mortgages at Paragon Bank, commented.
“While I feel that this trend was more evident among owner occupiers and overstated in terms of the effect on the rental market, it is nevertheless interesting to see landlords in Central London report the highest levels of tenant demand currently and during the previous three months.
“In addition, we see that the overall record high level of increased tenant demand reported in Q3 2022 continued into the final quarter of last year. 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.”
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