Landlords are reporting that tenants are prioritising properties with gardens and space to work when looking for their next rented home, Paragon Bank research has revealed.
A survey of over 1,300 landlords by BDRC BVA on behalf of Paragon showed that a fifth of landlords said a property with a garden was top of their tenants’ list of requirements in response to coronavirus, followed by properties with a space to enable them to work from home (15%) and a fast broadband connection (12%).
Richard Rowntree, Paragon Bank Managing Director of Mortgages, said:
“Coronavirus has prompted people to think about how and where they want to live. Space is clearly becoming a priority over other aspects, such as being close to amenities or good schools, whilst it seems people also expect home working to become more common going forward.
“Landlords have proven adept at responding quickly to changing tenant demand and we expect to see growing demand for properties in locations outside of traditional commuter locations that offer more space at more reasonable prices. Plus, we may see landlords targeting larger homes that offer the extra space tenants are asking for.”
Paragon’s research highlighted a slight uptick in demand for houses amongst those landlords looking to purchase new property compared to last year. The research showed that 36% of landlords looking to acquire new property over the next 12 months would target a semi-detached house, up from 33% during the same period last year. In addition, 12% said they would target a detached house, against 9% in Q2 2019. Demand for terraced housing remained steady at 50%.
The research showed that landlords with larger portfolios are more likely to report tenants demanding outside space. Just under a third of landlords (32%) with 20+ properties in their portfolio said that tenants were prioritising outside space, falling to 20% for those with two to three properties.
Richard Rowntree concluded: “Landlords are looking at the opportunities available to them and what type of properties tenants will want going forward. They have to ensure that tenant demand is robust and sustainable in the long term and whether the behavioural changes we are witnessing today will be here tomorrow also.”