Over eight in 10 landlords are reporting strong levels of tenant demand, Paragon Bank research has revealed.
As part of research carried out for Paragon’s PRS Trends report, nearly 800 landlords were asked about demand for their lets during the first quarter of the year. On average, the majority, 43%, said that tenant demand is ‘very strong’, with a further 40% stating that it is ‘quite strong’.
Conversely, just 1% of landlords noted ‘weak’ tenant demand, while 12% report it to be ‘average’.
The research, conducted by research agency Pegasus Insight, also uncovered regional differences in demand across England and Wales.
The highest proportion of landlords experiencing strong tenant demand was in the South West, where more than half, 54%, said it was very strong and 30% quite strong. Similar levels of demand were recorded in the North East, where 51% perceived it to be very strong and an additional 36% strong.
Yorkshire and The Humber was the region deemed to have the lowest levels of demand after 49% of landlords stated it was quite strong and 31% very strong.
Richard Rowntree, Managing Director for Mortgages at Paragon Bank says: “Although recent reports have pointed to an improvement in stock levels within the private rented sector, this research is evidence that investment in rented homes is still very much needed as demand still outweighs supply. Making more homes available for tenants provides them with greater choice and is one of the most effective ways of keeping rental inflation at affordable levels.”
He adds: “We can only see tenant demand levels growing, fuelled by forecast population growth and household formation over the next decade. Rental housing supply needs to keep pace to ensure those who want or need to rent a home have a choice of property at a reasonable price.”
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A few years ago my flats let after one viewing
This year I've had over 20 and not one offer
Nuff said
I am shocked at that, I have a couple of flats ( Manchester) and they are always easy to let.
It's supposed prime central London
The only prime thing about it is the level of idiots wasting my time
HMOs seem to have slowed down a bit. Usually I have less than a week between tenancies. Since Christmas it's been closer to a month for most rooms. I am keen to keep households fairly cohesive and will let existing tenants veto any applicants they don't think would fit in. But I've done that for years. My usual HMO tenant is a recently graduated professional in their 20s. I'm hoping this is just a brief blip as these were the people who spent their uni years in lockdown and their first grad job has been WFH. Once they have to work from the workplace it should pick up.
No kidding a rise in demand or is it a cut in supply. Thousands of Landlords driven out by law and Residential Auctions never had it so good when traditionally dilapidated properties were the order of the day, now it all properties to sell
quickly.
I am considering putting mine up for auction.
I could have let mine over fifty times each. However, I only want short lets and most people want to stay indefinitely.
As we have no idea what the nature of new tenancy agreements is going to be/ precisely what the next government will do, I am being ultra cautious and also considering selling.
What are the new rules concerning short lets going to be? Michael Gove had said that everyone who was already letting for short periods would have their properties automatically classified as the new planning class, C5. Is that the case under a Labour Government?
What will be the rules concerning student lets? Will landlords be able to end them at the end of the academic year? Will fixed term tenancies be allowed in relation to students? Or will students have absolute security of tenure? Is it the case that you would have needed to be an accredited landlord when you let to students, if you want them back at the end of the academic year?
What will be the rules concerning serviced flats where there is a cleaner? Are they going to be permitted?
What will be the rules if you let to a local authority for a fixed period of time so that they can provide temporary accommodation for the homeless. Would the landlord get the property back at the end of the fixed term or would the occupants/tenants/licensees(?) actually have the right to stay forever?
The usual reason why there is lack of interest is because the rent is too high. I offer my flats all inclusive and at the local housing allowance rate, too (sometimes below that if one person wants to rent a two bedroom flat). And they all have large rooms as well. Therefore everyone wants them, but I am worried to let to anybody. I remember very well the Rent Act days when once you had let a flat you had said goodbye to it forever, and also the tenant could have the rent dramatically reduced. Is that what is coming now?
There are other considerations now which didn't arise in the past. Is Labour going to require landlords to reach EPC C without any regard to the cost in doing that in relation to some properties?
Is Labour going to adopt an even more punitive tax regime in relation to landlords to raise money? They have suggested that that might be the case. For landlords with mortgages, could the basic rate tax relief be abolished?
5* gold plated tenants only need apply from now on, no risk taking
Demand massively increased in my area. However quality of persons enquiring (from a landlord perspective) not great though, benefits, low income, pets, kids, problems, want a guarantee of long let. Out of 100 enquiries maybe 20 viewings and maybe 5 you'd be happy with. If you are fussy like me that is.
Paragon bank probably only researched among their own customers. That is just a narrow research. They never asked me and many others. What do they know, when their research is not with the full spectrum of landlords. The demand seems to have gone down, even for student properties, as practically all office blocks in the area have been converted to student rooms which includes all the bills and concierge and activities and games rooms. Rent is a lot higher but they wish to have peace of mind. The rooms are smaller but that is not putting the tenants off. So this summer, it may prove to be a challenge to find students. I will know within 2 months
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