According to the latest research from Paragon, 37% of landlords, expect tenant demand to grow during 2020, compared to 7.3% predicting a fall.
Due to a strong 4th quarter for 2019, 27% of landlords have seen an increase in tenant demand during the final quarter of 2019.
One of the aggravating factors, for landlords, is the Tax and regulatory changes. This has caused some landlords to sell up and leave the letting sector.
Mr Rowntree Paragon managing director of mortgages said: “Although homeownership is increasing on the back of government policies, there is still growing demand for rented property for a variety of reasons.
“We expect to see tenant demand to continue to increase in the coming years. It’s important, the private rented sector is adequately financed, to ensure tenants have a good choice of property, and rental inflation is kept under control.”
With landlords selling there portfolio and some landlords switching to a holiday let, tenants are going to find it challenging to find a suitable property they want.
Hampton international have report suggests the same story. There were 2.66 million private landlords in Britain in 2019, and this is 222,570 fewer than 2017’s peak of 2.88 million. The lowest level since 2012 when the total was 2.58 million.
Mrs Helen Cartwright from the British Landlords Association said; “We very much hope, the chancellor will use the next budget to make changes to instil confidence for the PRS.”
Source: British Landlords Association
Author: Marc Blandley-Smith
Date: 18th of February 2020