More landlords across the UK are claiming that tenant demand is growing steadily, according to the latest report from Paragon, a leading provider of buy-to-let mortgages for landlords with property portfolios.
“The proportion of landlords who believe tenant demand is ‘growing or booming’ has increased to the highest level (29 per cent) in almost a year,” Paragon’s latest PRS Trends Report for the third quarter of 2019, revealed.
It also marks the first time that the proportion of landlords saying tenant demand is growing or booming has increased in consecutive quarters since the fourth quarter of 2017. The overall number of landlords reporting that tenant demand as stable, growing or booming was 81 per cent.
Portfolio landlords continue to drive an increase in portfolio size and value, with the overall average portfolio now at 13.2 properties and worth £1.82 million – the second consecutive, record average value. This demonstrates the growing confidence of portfolio landlords in the rental market. These findings indicate that the private rental sector (PRS) market is strengthening across the UK.
Though Brexit has impacted the UK property market, the rental market has remained resilient. Rental values and yield continue to remain in positive territory. For the first time in many months, private rents in London crossed the 3 per cent mark in July, according to HomeLet Rental Index. Average rents in London are still 106.3 per cent higher the average rent in the UK.
John Heron, Director of Mortgages at Paragon, said: "A clearer picture is starting to emerge of the impact that multiple government and regulatory interventions are having on the PRS. RICS reported a similar trend in their August residential survey and it is widely anticipated that this will lead to reduced choice and higher rents for tenants."