Landlords Report Record High Demand for Tenants in Quarter 3
Paragon research shows an all-time high record of 71% landlords reporting that demand for tenants has increased in Q3 2023. Breaking the previous record set in the second quarter of 67%. While only 3% of landlords reported a decrease in demand.
The West Midlands reported the greatest demand within England and Wales with 76% of landlords noticing an increase, closely followed by Wales (75%), the South East (74%) and the East Midlands (73%). On the other hand, in the North East (65%) and the East (61%) landlords have noticed the smallest increase in demand.
Associated with the increase in demand, landlords have reported rising rents, 87% have noticed an increase within areas they let properties, unchanged from the previous quarter.
70% of landlords reported that they had increased rent on properties within their portfolio within the last year, up from 65% in Quarter 2. A further 54% stated they had plans to do so within the next 6 months, a 3% increase from last quarter. Of landlords planning to increase rents, the average rent will rise by 8.4%.
Two thirds of landlords say that they planned to increase rent to cover higher expenses and running costs, while 63% followed to match the market rate. Just below half, 48%, intended to increase rent to cover increased mortgage costs.
Richard Rowntree, Managing Director for Mortgages for Paragon Bank said: “During the first two quarters of the year we saw record levels of tenant demand reported by landlords. For this to be surpassed in Q3 highlights how the imbalance between the supply of rented homes and demand from renters is not improving. This reduces choice and increases competition for renters, while fuelling rental inflation, a scenario that often impacts the most vulnerable to the greatest degree.
“With social housing unable to meet this demand and home ownership aspirations hindered by cost-of-living pressures, further investment in the PRS cannot be delayed.”
If you are looking to purchase a new Buy To let or to review your exiting Property portfolio, then you need to consult one of our Mortgage Consultants.
Your mortgage is secured on your property. Your home may be repossessed if you do not keep up repayments on your mortgage.
The information contained within was correct at the time of publication but is subject to change.
Source: Paragon Bank