The proportion of landlords operating in Outer London who have reported increasing tenant demand has surged since the previous quarter.
Research undertaken on behalf of Paragon Bank has highlighted that in Q1 2022, 79% of landlords who let homes in Outer London indicated that they had seen increases in tenant demand during the previous three months. The most recent wave of the survey covering Q2 2022 has revealed that this figure has grown to 85%, making Outer London the region with the highest net increase in tenant demand.
In addition to analysing changes in tenant demand during the previous three months, the survey also provides insight on current demand, another metric that illustrates the strong performance of the Outer London private rental market since the first quarter of the year. Despite the South West being the region with the highest proportion of landlords (90%) reporting ‘strong’ demand currently, the biggest increase on Q1 2022 was seen in the proportion of those managing properties in the capital’s outer boroughs, rising from 72% in Q1 2022 to 85% in Q2 2022.
Linked to this and another indicator of demand for rented property in Outer London, the survey of over 700 landlords, undertaken by BVA BDRC, found that the incidence of voids has fallen dramatically since the same period a year ago. In Q2 2021, 35% of Outer London landlords said that they had experienced an empty property within the last three months, the second highest region behind the North East. A year on, Q2 2022 has seen this figure fall to 21%, with only landlords in the West Midlands less likely to have reported a void.
Richard Rowntree, Mortgages Managing Director for Paragon Bank said: “We know that the private rental market in London was hit particularly hard by the Covid pandemic but has rebounded strongly since and these latest figures provide further evidence of this.
“As one of the world’s greatest cities, London is extremely dynamic, constantly evolving as a diverse mix of people come and go, calling it home as they study, work, travel or raise families. This is why it is important for the capital to have a thriving PRS, enabling people to benefit from the flexibility that rented homes provide.”
The findings form part of Paragon’s Private Rented Sector (PRS) Trends report which offers insight into a range of useful metrics including tenant demand, landlord profitability, yields generated and future investment plans.
For further information contact:
Jordan Lott
Media Relations Manager
Tel: 0121 712 2319
www.paragonbank.co.uk
Notes to editors:
BVA BDRC surveyed 708 landlords during May and June 2022 on behalf of Paragon Bank.
Paragon lends to private individuals and limited companies and has mortgages suitable for single, self-contained properties, as well as HMOs and multi-unit blocks. Paragon can accommodate higher aggregate lending limits and more complex letting arrangements including local authority leases and corporate leases along with standard ASTs.
Paragon introduced its first product aimed at the professional property investor in 1995 and is a member of UK Finance, the Intermediary Mortgage Lenders Association (IMLA), National Landlords Association (NLA) and the Association of Residential Letting Agents (ARLA).
Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £13 billion of assets under management and manages over 450,000 customer accounts.
Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.