For the second time this year, the proportion of landlords reporting increasing tenant demand has hit an all-time high, research conducted on behalf of Paragon Bank has found.

A survey of over 700 landlords, carried out by BVA BDRC, has revealed that a net increase in tenant demand during the past three months was seen by 65% of respondents. This surpasses the previous all-time high of 62% recorded during the first quarter of this year, marking a consistent and significant rise in tenant demand since the low net increase of 14% was recorded in Q2 2020.

Breaking down the net increase also shows that the 39% of landlords who reported that demand had ‘increased significantly’ was the highest proportion since the metric was first tracked in 2011. Additionally, only 1% of landlords felt that tenant demand had ‘decreased slightly’, while none said it had ‘decreased significantly’, a survey first.

Moray Hulme, Mortgage Sales Director for Paragon Bank said: “We’ve seen demand for privately rented homes climb consistently since the pandemic. The fact that the all-time high we reported earlier this year has now been surpassed supports our view that the private rented sector remains an essential component of UK housing provision.

“Renting appeals to people of different demographics and from all walks of life but the flexibility and relative affordability of rented accommodation means its value is even more apparent at what is an economically challenging time for many.”

Viewing the findings at a regional level, we see strong tenant demand reported in all areas throughout England and Wales. Interestingly, a trend emerges in the South West, Wales and Outer London, with landlords in each of these regions noting strong tenant demand during each quarter so far in 2022. Net increases in tenant demand were recorded by 88% of landlords in the South West and by 84% of landlords in both Outer London and Wales in Q3 2022.
 

For further information contact:

Michael Clarke
Head of Media Relations
Paragon Bank
07740090746

www.paragonbank.co.uk 

Notes to editors:

BVA BDRC surveyed 730 landlords during August and September 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.