Recent research from Paragon Bank has revealed the areas in the UK that are experiencing even higher levels of tenant demand than the national average. This information can help you make a more informed decision about where to invest.
Outer London and the East Midlands Lead in Tenant Demand
According to a survey conducted by BVA BDRC, 91% of landlords in Outer London reported rising levels of tenant demand during the second quarter of this year. What’s more, 67% of landlords stated that this demand had grown significantly. Similarly, in the East Midlands, 86% of landlords reported an increase in tenant demand.
Wales closely followed with 82% of landlords reporting rising levels of tenant demand. On the other hand, the North East recorded the weakest tenant demand, with only 69% of landlords seeing an increase.
Overall Tenant Demand in Britain
Looking at the bigger picture, the survey found that across Britain as a whole, 67% of landlords reported increasing levels of tenant demand during the second quarter. This figure remains unchanged from the first quarter and represents a record high. In contrast, only 2% of landlords reported falling levels of demand.
Rising Rent Prices
The strong demand for rental properties is leading to an increase in rent prices. The survey revealed that 87% of landlords stated that rental prices were increasing in their local markets. Additionally, 51% of landlords expressed plans to raise rents across their own property portfolios within the next six months.
When delving into specific regions, landlords in Wales (94%), the North East (92%), and Yorkshire & Humber and the East Midlands (both at 91%) were the most likely to see rent increases in their respective markets.
The Implications for Property Investors
This research by Paragon Bank highlights that tenant demand continues to grow in many parts of the country. With supply not keeping pace, rental inflation is becoming increasingly prevalent. This trend is likely to continue until the demand is better balanced with the supply of rental properties.
As a potential property investor, it is essential to consider these factors when deciding where to invest. Areas such as Outer London, the East Midlands, Wales, the North East, and Yorkshire & Humber show promising levels of tenant demand, which could translate into higher rental incomes for landlords.
It is worth noting that while areas with high tenant demand may present attractive investment opportunities, conducting thorough research on specific locations and property types is crucial. Additionally, keeping abreast of the latest market trends and consulting with experts can help you make informed decisions and maximize your potential returns.
In conclusion, the areas with higher tenant demand than the British average can present enticing opportunities for property investors. By staying updated on market trends and understanding the dynamics of specific regions, you can make informed choices to enhance your investment portfolio.