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