The proportion of landlords reporting increasing tenant demand has reached an all-time high of 62%. Research undertaken on behalf of Paragon Bank has revealed that the strong tenant demand seen during last year has continued into 2022 after growing to the highest level recorded since 2011, when research agency BVA BDRC started tracking the metric. 

Figures for the first quarter of the year suggest that numbers of people seeking privately rented homes have grown consistently throughout the course of the pandemic. The 62% of landlords who reported increasing tenant demand in Q1 2022 is double that of the same period a year ago and 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. A ‘significant increase’ 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. 

Analysing the results regionally highlighted the impressive resurgence of the Central London rental market. Increasing tenant demand was reported by 84% of landlords operating in the inner capital, a substantial increase on the 12% seen in Q1 2021.