Research by Paragon Bank and financial figures from estate agents Foxtons both suggest a boom-time for landlords, but difficult times for tenants.
Research conducted on behalf of Paragon, which offers mortgages to landlords, found that the proportion of landlords reporting increasing tenant demand has hit an all-time high.
A survey of more 700 landlords, carried out by BVA BDRC, found 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. Only 1% of landlords felt that tenant demand had ‘decreased slightly’, while none said it had ‘decreased significantly’.
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.”
Meanwhile Foxtons shares shot up more than 15% this morning after the estate agency group published its full-year guidance.
Foxtons’ letting division reported growth driven by a 23% increase in average revenue per transaction. However, there was a 9% drop in lettings volumes.
Foxtons said rental price growth was underpinned by “strong domestic tenant demand, and growth in international tenants and corporate relocations over the summer months, while rental stock levels remain constrained.”
