Landlords Say That Tenant Demand Will Rise In 2020

AFS Team·5 March 2020·4 min read
Landlords Say That Tenant Demand Will Rise In 2020

Landlords Say That Tenant Demand Will Rise In 2020

Landlords say that demand from tenants for rental homes will rise during 2020.

That's the result of a survey carried out by Paragon who say that four out of 10 landlords are predicting that demand from tenants for residential homes will rise this year.

The news follows a strong end to the final quarter of 2019, when 27% of landlords say they have experienced growing tenant demand.

Just 7.3% of landlords are predicting a fall in demand, while 37% say that demand will rise.

The managing director of Paragon mortgages, Richard Rowntree, said: "There is still growing demand for rental property for a range of reasons.

"We expect tenant demand to continue increasing over the coming years and it's important that the private rental sector is financed adequately to help ensure that tenants have a choice of property and that rental inflation is kept under control."

The Paragon survey coincides with the recent English Housing Survey published by the government which found that the number of households who are in the private rental sector has remained static at 4.6 million.

However, the survey also highlights that the length of time that people are staying in their private rental property is rising.

The average time is now 4.4 years, that's up from an average of 4.1 years, and over the past 10 years the proportion of renters aged between 55 and 64 has risen from 7% to 10%.

London landlords ‘lose £730 million’ in void periods

Meanwhile, it has been revealed that London's landlords are losing £730 million in lost revenue because of void periods.

This is despite the demand for rental homes being at an all-time high in the capital, and they are now sitting empty for 24 days on average.

The figures come from lettings company Home Made who say that the volume of voids is reducing tenant options when they want to move home and it's also hitting landlords' income.

The survey highlights that void periods vary around the capital, for example, the average time for a landlord to fill a property in Hounslow and Camden is 15 and 17 days respectively. In other boroughs, it is 37 days.

A spokesman for the firm said: "Landlords are needlessly losing value on an investment and tenants are missing out on homes. Our research shows that one of the driving factors keeping homes unoccupied in London is the inefficient agency model.

"Landlords are paying an agency for a service and if they don't deliver, they need to hold them to account. We are urging landlords to ask agents for transparency from the date the property will be made available online, through to feedback and viewing volumes up to the move-in date."