Landlords say demand for rental properties is at a historical all-time high, a poll by the NRLA has discovered.
The survey of private landlords across England and Wales, conducted in partnership with the research consultancy BVA/BDRC, found that 57 percent confirmed that demand for homes to rent had increased in the third quarter of 2021 – up from 39 percent in the second quarter of the year.
At the beginning of the first Covid lockdown in the second quarter of 2020, just 14 percent of landlords reported tenant demand has increased. In a sign of recovery in the market, landlords operating in London have seen a significant increase in demand compared to the levels reported throughout the pandemic as workers returned to the capital.
68 percent of landlords operating in outer London reported demand has increased, up from 25 percent in the third quarter of 2020. In central London, 54 percent reported increased demand, up from 16 percent at the same time last year.
Elsewhere, landlords operating in the South West reported the strongest demand with 79 percent saying that demand had increased in the third quarter of the year. This was followed by 74 percent in the South East (excluding London), 73 percent in Wales, and 71 percent in the West Midlands.
Despite the booming demand, 19% of landlords plan to reduce the number of properties they rent out by taking advantage of the recent surge in the house price/sales market – whilst an equal number are aiming to increase their rental property portfolios.
This indicates that, as rental demand intensifies and the ‘balance sheet’ of supply remains the same, the UK will see an increase in retail HMO rental yields and, in turn, place added pressure for local authorities to readdress their existing UKGA cost propositioning to landlords.
Ben Beadle, Chief Executive of the NRLA, says: “As demand picks up following lockdown measures, we need a stimulus to support responsible landlords to provide the homes to rent we vitally need.
“Without this, it will ultimately be tenants that suffer as a result of less choice, higher rents, and the resulting
difficulties they will encounter when looking to become homeowners.”
Source: Landlord Zone