A document variety of landlords have reported rising ranges of tenant demand throughout the third quarter of the yr, analysis from Paragon Financial institution confirmed.
Seventy-one % of landlords reported rising ranges of tenant demand, up from the earlier document excessive of 67% recorded within the second quarter.
This marks a brand new all-time excessive throughout the 12-year interval, in keeping with tracked metric from analysis company BVA BDRC, who carried out the examine on behalf of Paragon Financial institution.
It discovered that simply 3% of landlords reported that tenant demand had fallen.
The strongest ranges of tenant demand will be seen within the West Midlands with 76% of landlords within the area reporting a rise. That is adopted by Wales (75%), the South East (74%) and East Midlands (73%).
The North East (65%) and the East of England (61%) skilled the bottom proportion of landlords with tenant demand will increase.
In the meantime, landlords are additionally reporting rising rents with 87% figuring out this as a present pattern in areas the place they let properties unchanged from final quarter.
Seven in 10 landlords (70%) said that they’ve elevated rents throughout their very own portfolio inside the final 12 months, up from 65% in Q2.
A decrease proportion, 54%, of landlords are planning to boost rents throughout their portfolios within the subsequent six months. That is up by three proportion factors since final quarter. These planning to extend rents anticipate doing so by a median of 8.4%.
Two-thirds (66%) of landlords cited overlaying the elevated value of operating a property, nonetheless the commonest purpose regardless of falling from 74% in Q2. This was intently adopted by aligning with native market rents which was the explanation behind deliberate lease rises for 63% of landlords. That is up by 4 proportion factors for the reason that earlier wave.
Just below half (48%) of these intending to extend rents stated that they are going to accomplish that to cowl elevated mortgage finance prices, a nine-percentage level lower on final quarter.
Paragon Financial institution managing director for mortgages Richard Rowntree stated: “Through the first two quarters of the yr we noticed document ranges of tenant demand reported by landlords. For this to be surpassed in Q3 highlights how the imbalance between the provision of rented properties and demand from renters isn’t enhancing. This reduces selection and will increase competitors for renters, whereas fuelling rental inflation, a situation that always impacts essentially the most weak to the best diploma.
“With social housing unable to fulfill this demand and residential possession aspirations hindered by cost-of-living pressures, additional funding within the PRS can’t be delayed.”