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Six in 10 landlords recorded increased tenant demand for their properties in the final quarter of 2023, Paragon Bank research has revealed.
Research carried out on behalf of Paragon Bank showed that more than a third of landlords reported demand from tenants increased significantly during the three months to the end of December, with a further quarter experiencing slight increases.
According to the findings, only 16 per cent reported no change in demand, while just four per cent felt it had decreased.
Analysing the data regionally highlighted how demand was strongest in the North West, with three-quarters of landlords (75 per cent) reporting increases in tenant demand for the period. This was closely followed by Yorkshire & The Humber, where a similar proportion of landlords (74 per cent) identified increased tenant demand, and the East Midlands where it was reported by just over seven in 10 (71 per cent) landlords.
The survey, undertaken by BVA BDRC, also highlights a link between increased tenant demand and rental inflation.
Rent increases were more likely to be reported by landlords in the most in-demand regions compared to the rest of the country, with the exception of the East of England.
In each of these areas, just under nine in 10 landlords say that rents are rising currently – 89 per cent in the East Midlands, 88 per cent in the North West and 87 per cent in Yorkshire & The Humber – which compares to around eight in 10 in regions such as the South West (81 per cent) and Outer London (79 per cent).
Looking forward, half of landlords (51 per cent) are planning to increase rents across their own portfolio in the next six months, with the increased cost of running a property the key driver for those seeking to up rents (70 per cent). Other forces behind planned rent increases include alignment with broader market rents (62 per cent) and increased mortgage costs (40 per cent), although this has fallen by eight percentage points compared to Q3.
Richard Rowntree, Paragon Bank Managing Director of Mortgages, says: “Although tenant demand has come off its record highs, there remains a chronic supply demand imbalance across large parts of the country.
“Although it’s a complex issue with many factors at play, the supply and demand dynamic dictates that we pay more for goods and services that are in high demand and short supply. It is unsurprising then to see that the landlords in the regions seeing the most demand are amongst the most likely to see rents rising. This illustrates how a healthy, sufficiently supplied PRS is needed to maintain rent levels that are affordable for the millions of people that live in rented homes.”
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Obviously this is the case & will continue to be so as the underlying factors are not going away; landlords are still selling up, so supply goes down, demand increases and so do rents. Fine by me. Thank the Government for that.
Agreed Sarah, I had one rented to a guy and he was stealing it at 450 per month. Never put it up in 8 years as I liked the guy, anyway his head fell off and he had to go. Rented now at 900pcm and all down to this program of nonsense started by acorn, shelter, gove and all.... Have it on a guaranteed rent with my agents so at least I know I am getting paid.
Following on from Peter WDIB's problem with the guy he liked's "head falling off"...
Without s21, or Section 8 being beefed up more than currently proposed in the RRB, how would one get rid of such a tenant?
This links back to the mental health article here on Saturday's LLD Today and comments following it:
-not all those who end up suffering mental health exhibit symptoms when they first move in. I had a nice tenant for 12 years who gradually developed dementia; becoming a danger to herself and my tenant upstairs (to both of whom I had a 'duty of care'). Because her son (living in the USA) knew I could use s21, though a bit in denial he arranged her move to a suitable care home; once I'd raised several concerns. With fingers crossed, I even let him have more time to find a suitable place.
When I bought my first home, the elderly lady owner next door started going mad. Collecting shopping bags of rubbish from the town centre and bring them into her house. She was eventually "sectioned", after many visits from social services and sometimes police, but it took ages. Worrying, e.g. in case she accidentally set light to her house and fire spread to mine.
If as a landlord with a tenant like that, I'd want at least the threat of s21 to get prompter action to get her into care accommodation.
I've raised this sort of issue with 2 MPs now, one of whom (not allowed to speak in parliament being a deputy Speaker) sent my numerous concerns onto Jacob Young, the current Minister responsible for the RRB. His reply didn't address any of my detailed points: it was just a aren't we good non-reply.
The other MP is a party whip for housing and levelling up, so claims they aren't allowed to speak on those issues; despite being on the Committee considering the RRB in detail (they rushed it and finished early). So pretty useless, and hasn't come back to me about my suggestions for the parliamentary questions that they are allowed to ask.
There is one other MP I could legitimately approach, fortunately now no longer a Tory minister.
But I wonder why bother, if I am just wasting my time.
House of Lords stages of RRB might be better, but I guess too many Shelter no-one, Crisis-what Crisis?, Generation Rant, Acorn-brain, cronies in there. Hopefully a few landlords too though. But how to know who in the lords to approach?
NRLA should be spotting and picking up these type of issues.
One rental just got their s21 notice, and will be sold (no tenant could ever afford that one). Other pair I'd like to keep, partly for my older age. So under current RRB proposals, I could get them back when needed. But don't know if that provision will survive a Labour Government.
Henry
I know of an 81 year old landlord who was twice refused possession at the Glasgow 1st tier, despite his age and frailty, massive rent arrears and the property being kept in a poor state as his tenant would not allow access. On the third attempt, supported by a letter from his GP that his mental health was suffering, he was granted possession provided he put the property up for sale as soon as possible - irrespective of market conditions.
Repossession grounds that were mandatory in the Scottish December 2017 PRS legislation were watered down during Covid and remain discretionary.
Fortunately two sides can play the mental health card these days, especially if back ed up by old age and a GP letter. !
Robert,
Good points: thank you for setting them down.
In my representations, I've said that if English s21 is to go and be replaced with not-very-beefed-up section 8 Grounds, then many/most section 8 Grounds need to be Mandatory.
Also I've pointed out aspects of the needs of elderly or infirm landlords (who are still legally responsible even if agents act for them).
Under current proposals, English landlords will be able to gain possession in order to sell-up (some are doing already anyway) or house a -CLOSE- family member.
But that category is far too limited.
Imagine trying to tell the proverbial mother-in-law that she isn't close enough to be classed as family!
Or you won't be able to house one's only Auntie, now old and alone, who trusts you and has known you for 60 years, rather than some LLD she's not met. She even looked after you sometimes when you were a child. But you can't help her back.
That's what the Renters (Reform) Bill implies: just two instances of how poorly thought-out it is.
But Govt. think they are being fair to LLDs.
All my tenants have just had their notice of the rent increases in April, and so it will be every year from now on, until all this started I had not increased them for a number of years, not now. Tenants are doomed. 🆘😱
Increase while you can, Simon. If the flame-haired one gets power, that will change. 😩
Agree, I am increasing rents as often as I can, as much as I can. I've been loosing too much money keeping the rents the same with all the increasing costs.
Same here Simon...I wouldn't bother increasing rents previously but now I plan to increase them all every year at least until I've sold them all!
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