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Tenant demand hits all-time high

Moray Hulme.jpg

The proportion of landlords reporting increasing tenant demand reaches an all-time high of 62%.

Research undertaken on behalf of Paragon Bank has revealed that the strong tenant demand seen during last year has continued into 2022 after growing to the highest level recorded since 2011, when research agency BVA BDRC started tracking the metric.

Figures for the first quarter of the year suggest that numbers of people seeking privately rented homes have grown consistently throughout the course of the Covid pandemic. The 62% of landlords who reported increasing tenant demand in Q1 2022 is double that of the same period a year ago and almost four times the level reported in Q1 2020 when only 16% of landlords felt that demand was growing.

As part of the most recent research, over 700 landlords were asked to assess tenant demand over the previous three months. A ‘significant increase’ was seen by over a third, 34%, of respondents, with a further 28% reporting slight increases. Perceived decreases in tenant demand, both significant and slight, were recorded by just 3% of landlords, the lowest on record.

Analysing the results regionally highlights the impressive resurgence of the Central London rental market. Increasing tenant demand was reported by 84% of landlords operating in the inner capital, a substantial increase on the 12% seen in Q1 2021. This places Central London alongside the South West and Wales as the regions seeing the highest levels of increasing tenant demand during the previous three months.

Moray Hulme, Mortgage Sales Director for Paragon Bank said: “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.”

For further information contact:

Jordan Lott
Media Relations Manager

Tel: 0121 712 2319

www.paragonbank.co.uk 

Notes to editors:

BVA BDRC surveyed 729 landlords during March 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.