propertytalk Live! - Tenant demand for private rented homes hits two year high

propertytalk Live! - Tenant demand for private rented homes hits two year high

Tenant demand for privately rented property hit a two-year high during the fourth quarter of 2010.

Paragon’s Private Rented Sector (PRS) Trends quarterly snapshot of developments in the PRS and buy-to-let market showed the proportion of landlords reporting growing levels of tenant demand was at its highest level since the final quarter of 2008.

Four out of 10 landlords said tenant demand grew during the quarter, compared to 36% during the third quarter. The proportion of landlords reporting growing levels of tenant demand has now risen for six consecutive quarters, which has
coincided with a shortage of mortgage finance in the owner-occupied mortgage sector.

Just 4% of landlords said tenant demand fell during the quarter, the lowest proportion since the third quarter of 2008 and the second lowest level since Paragon started collating the data in 2004.

Nigel Terrington, Paragon Group chief executive, says:

“Tenant demand shows no signs of slowing down and in some busy markets, such as London, there is anecdotal evidence of sealed bids being used for certain properties. This will become more commonplace across the UK unless the PRS is able to expand to meet higher levels of demand. Four out of 10 landlords say that tenant demand grew during the period, which is a significant number and has major implications for renting in the UK if the issue of rental property supply cannot be addressed.”


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