In a recent survey conducted by Paragon Bank, an overwhelming 83% of landlords have reported robust levels of tenant demand. The data comes from Paragon’s Private Rented Sector (PRS) Trends report, which gathered responses from nearly 800 landlords regarding demand during the first quarter of the year.
The findings indicate that 43% of landlords described tenant demand as ‘very strong’, while another 40% characterized it as ‘quite strong’. In stark contrast, a mere 1% of landlords reported ‘weak’ demand, and 12% considered it to be ‘average’.
Regionally, the South West emerged as the area with the highest proportion of landlords experiencing strong tenant demand. Here, 54% of landlords reported demand as ‘very strong’ and 30% as ‘quite strong’. The North East also saw significant demand, with 51% of landlords noting it as ‘very strong’ and 36% as ‘quite strong’. In Yorkshire and The Humber, demand was somewhat lower but still notable, with 49% of landlords describing it as ‘quite strong’ and 31% as ‘very strong’.
Richard Rowntree, managing director for Mortgages at Paragon Bank, emphasized the implications of these findings. “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,” Rowntree stated. “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.”
Rowntree also highlighted future trends, noting, “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.”
The survey underscores the ongoing demand for rental properties across various regions, suggesting a sustained need for increased investment in the private rental sector to balance supply with growing demand.