Tenant demand hits record high

Steve Lumley·6 October 2020·4 min read
Tenant demand hits record high

Tenant demand hits record high

The number of tenants who have registered with letting agents for a home to rent has reached a record high, a report reveals.

The Private Rented Sector Report for August from Arla Propertymark reveals that the average number of renters who registered with a member branch was 101.

That is higher than the previous tenant demand record which was set in July when the figure was 97.

The number of rental properties available in member branches in July and August also reached a record high of 208, on average.

Arla's president, Angela Davey, said: "The latest figures show the rental market is not showing any signs of slowing down.

'The private rented sector's future'

"We are continuing to see record-breaking levels of demand and rental stock, which paints a positive picture for the private rented sector's future."

She added that as the UK heads towards winter, a growing number of Covid-19 restrictions are being implemented which may affect landlords.

However, the report also highlights that 48% of tenants have seen rent rises in August - the figure was 39% in July, and 29% in June.

Ms Davey said: "It's important for landlords to communicate with their tenants, and for tenants to continue paying rent to help ensure the market remains strong."

Rental demand from tenants is rising

News that rental demand from tenants is rising has been underlined by a report from Howsy, the lettings management platform.

They reveal that despite an increasingly tough economic climate, the demand for a rented home has risen by 13% since the second quarter across major cities in the UK.

The largest increase for tenant demand was seen in Belfast with a 31% rise, followed by Glasgow with 29%. Tenant demand also rose in Bournemouth by 26%, and in Bristol by 21%.

LendInvest relaxes their BTL criteria

Meanwhile, LendInvest has revealed that its buy to let criteria have been relaxed.

Now, their buy to let loan-to-value (LTV) ratios have risen to 80%, and maximum lending limits have also been increased.

The maximum loan size for standard property has now grown to £1.5 million.

'Landlords look to move fast'

The firm's director of buy to let, Andy Virgo, said: "Landlords look to move fast and stay flexible for new projects and, to do that, they need the right products.

"With the new update, we are not only able to deliver funding options, but have the right expertise and team behind them to be a vital partner for customers expanding their portfolios."

LendInvest has also revealed that it is to launch a funding offering for those first-time landlords who are wanting to invest in a buy to let property, and also for student let HMOs of up to six bedrooms.