The research found that during Q1 2022 the number of people seeking privately rented homes has grown consistently throughout the course of the pandemic
The strong tenant demand seen during last year has continued into 2022 after growing to the highest level recorded since 2011, according to Paragon Bank.
The research, which was undertaken by BVA BDRC on behalf of Paragon Bank and surveyed 729 landlords, found that during Q1 2022 the number of people seeking privately rented homes has grown consistently throughout the course of the pandemic.
The 62% of landlords who reported increasing tenant demand in Q1 2022 has doubled from the same period a year ago. It has also increased by almost four times the level reported in Q1 2020 when only 16% of landlords felt that demand was growing.
As part of the most recent research, over 700 landlords were asked to assess tenant demand over the previous three months.
The research also showed that a ‘significant increase’ in tenant demand was seen by 34% of respondents, with a further 28% reporting slight increases.
Perceived decreases in tenant demand, both significant and slight, were recorded by just 3% of landlords, the lowest on record.
On a regional basis, increasing tenant demand was reported by 84% of landlords operating in Central London, a substantial increase compared to the 12% seen in Q1 2021.
The increase places Central London alongside the South West and Wales as the regions seeing the highest levels of increasing tenant demand during the previous three months.
Paragon Bank mortgage sales director Moray Hulme says: Another record high in the proportion of landlords reporting increasing tenant demand reaffirms the need to increase the supply of homes in the private rented sector.
He said: There is evidence of landlords exiting the sector with many citing increasing tax and regulatory requirements making their lettings business more arduous to operate.
