Vast majority of landlords report strong demand for rental properties
More than 80% of landlords are experiencing high levels of tenant demand, according to new research from Paragon Bank.
The study, conducted by research agency Pegasus Insight as part of Paragon’s PRS Trends report, surveyed nearly 800 landlords about demand for their properties during the first quarter.
Of the respondents, 43% described tenant demand as “very strong,” while 40% said it was “quite strong.” Only 1% of landlords reported “weak” tenant demand, and 12% said it was “average.”
The Paragon research also highlighted regional differences in demand across England and Wales.
The South West reported the highest tenant demand, with 54% of landlords saying it was very strong and 30% describing it as quite strong. In the North East, 51% perceived demand to be very strong, and an additional 36% said it was strong.
Yorkshire and The Humber showed the lowest levels of demand, with 49% of landlords stating it was quite strong and 31% very strong.
“Although recent reports have pointed to an improvement in stock levels within the private rented sector, this research is evidence that investment in rented homes is still very much needed as demand still outweighs supply,” said Richard Rowntree (pictured), managing director for mortgages at Paragon Bank. “Making more homes available for tenants provides them with greater choice and is one of the most effective ways of keeping rental inflation at affordable levels.
“We can only see tenant demand levels growing, fuelled by forecast population growth and household formation over the next decade. Rental housing supply needs to keep pace to ensure those who want or need to rent a home have a choice of property at a reasonable price.”
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