Tenant demand across the private rental sector is at a record high according to buy to let specialist the Paragon Bank.
A survey of 600 landlords conducted on its behalf, assessing the market in the third quarter of 2021, shows that 69 per cent have recorded increasing levels of demand, with some 36 per cent stating the increase was ‘significant’.
Particularly strong net increases were reported in the South West and South East outside of London - 79 and 74 per cent respectively.
A total of 59 per cent of investors with property in the North East indicated experiencing increased demand.
This figure falls to 54 per cent in London - suffering still from the fall out of the pandemic - but there appears to be some slight increase in demand for the central areas of the capital.
Richard Rowntree, Paragon Bank managing director, says:“Landlords have been recording rising levels of tenant demand following the first lockdown, which reflects the shift in housing need created by the virus.
“The third quarter of the year is usually a busy one for the private rented sector with graduates starting new jobs, the beginning of the academic year and people turning to housing once the holiday season is over.
“With this seasonal demand added to already high levels of tenant demand, we are beginning to see a shortage of property in certain parts of the private rental sector, which is leading to rental inflation. The sector needs to expand to meet these exceptional levels of tenant needs.
“Recognising this, lenders can assist investors with products and service that supports them in responding to the needs of a diverse and growing mix of tenants.”
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