Over 80% of UK Landlords Report Strong Tenant Demand

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Majority of Landlords See High Levels of Demand in Q1 2024

Paragon Bank’s latest PRS Trends report revealed that landlords are still experiencing high tenant demand for private rental homes during the first quarter of this year.

The report includes a survey conducted on nearly 800 landlords; 43% of respondents said that tenant demand is ‘very strong’, and 40% replied that it is ‘quite strong’. This means that the vast majority of landlords asked (over 80%) are still observing high levels of demand for their properties.

For the remainder, 12% stated they are experiencing ‘average’ demand and just 1% responded that tenant demand is currently ‘weak’. Continuing strong demand is encouraging growing interest in buy-to-let investments and contributing to its reputation as the best type of property to invest in.

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Demand Perceived as Strong Across UK Regions

The report also provides information about the demand experienced by landlords in different UK regions. While some regional differences were observed, tenant demand was deemed strong by the majority of landlords in each area.

The highest proportion of landlords indicating strong demand was found in the South West, where 54% stated that it was ‘very strong’ and 30% selected ‘quite strong’ as their answer. In the North East, 51% said demand is ‘very strong’ and 36% intimated that it is strong.

The region with the lowest proportion still reported strong levels. 49% of Yorkshire and the Humber landlords said that demand was ‘quite strong’, and 31% replied ‘very strong’.

Further Reading: Is buy-to-let a good investment? Find out about this and other topics, such as how to buy luxury apartments and what is the best way to invest £100k in 2024.

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What is the Outlook for Tenant Demand in 2024?

Quarter 1 has seen high levels of tenant and demand, but is this set to continue?

With the currently severe supply-demand imbalance, demand for available rental properties doesn’t look like it will abate any time soon. This is also likely to keep upward pressure on rental prices, leading to continuing rental inflation for the foreseeable future.

Richard Rowntree, managing director for mortgages at Paragon Bank, said: “Although recent reports have pointed to an improvement in stock levels within the private rented sector, this research is evidence that investment in rented homes is still very much needed as demand still outweighs supply. Making more homes available for tenants provides them with greater choice and is one of the most effective ways of keeping rental inflation at affordable levels.”

“We can only see tenant demand levels growing, fuelled by forecast population growth and household formation over the next decade. Rental housing supply needs to keep pace to ensure those who want or need to rent a home have a choice of property at a reasonable price.”

Find out more about the UK property market with our latest buy-to-let area guides covering topics such as investment property available in York and Basildon investment properties.