The proportion of landlords reporting rising tenant demand has hit a five-year high, according to data from Paragon Bank.
Just under 39% of landlords said demand from renters increased over the past three months, with 18.2% saying it has grown ‘significantly’ and a further 20.3% reporting slight increases.
This is an 8% rise over the previous quarter, a continuation of the trend for rising tenant demand from the low of 14% posted in the second quarter of 2021, representing a 25% year-on-year jump. The highest rises since 2016.
The survey of over 750 landlords, carried out by data group BVA BDRC for Paragon Bank, also showed a 2% dip in the proportion of landlords reporting a fall in tenant demand compared to the second quarter of the year.
The number of landlords who are unsure about current levels of demand from renters also fell by 3%.
Across England and Wales, all regions saw a year-on-year increase in landlords reporting a ‘significant increase’ in tenant demand apart from London, the report says.
Yorkshire and The Humber saw the biggest jump, with a 65% rise in landlords reporting increased demand from those looking to rent, 28% significantly and 37% slightly.
This was closely followed by Wales and the South West where a net increase in tenant demand over the past three months was reported by 64% and 63% of landlords respectively.
Paragon Bank director of mortgage sales Moray Hulme says: “It’s great to see that tenant demand reported by landlords to hit the highest level since 2016.
“Quarter two of 2020 was a time of real uncertainty and this was reflected in the record low levels of demand that landlords saw.
“Demand bounced back the following quarter and has been rising ever since.
“This highlights the resilience of the private rented sector and suggests that a growing number of people have turned to it at a time when the stability of a good quality home is ever important.”