Tenant demand continues on its upward trend
There has been a raft of data in recent weeks around strong levels of rental yields and rental asking prices which represents great news for landlords as we face the additional challenges attached to tiered lockdowns across the UK.
In addition, tenant demand is also reported to have reached a four-year high in the third quarter of this year. This is according to research carried out on behalf of Paragon Bank which outlined that – in the three months to the end of September – 29 per cent of landlords reported rising tenant demand, the highest level since the third quarter of 2016. Out of the 700 landlords surveyed, one in 10 reported significant growth.
The survey showed that demand is currently growing the strongest in the North West and South West where almost half of landlords saw a growth (44 per cent), followed by the East Midlands (40 per cent). However, Central London recorded weaker tenant demand, with just 16 per cent of landlords seeing growth in the last three months. Outer London was slightly stronger, with a quarter of landlords recording rising demand in this area.
We have heard many anecdotal tales of people who were working in London pre-Covid who have since moved in with family members – on a temporary or semi-permanent basis – to reduce outgoings whilst still being able to work remotely. Such moves are likely to continue for the foreseeable future and as people adjust to working from various locations across the UK and this is likely to lead to even greater demand for rental properties as we move into 2021.