Tenant demand has tripled since before Covid, say landlords

Demand for rented properties has tripled since before the COVID pandemic, landlords have reported within new research published today.

Nearly three quarters of nearly 800 landlords polled by the NRLA reported increased tenant demand in the third quarter of this year, a record high.

This is an increase of 65% compared to the same time last year and compares to 22% of landlords reporting increasing tenant demand during the same period of 2019 before COVID lockdown measures were introduced by the Government.

The survey, conducted by the research consultancy BVA-BDRC, found that demand is strongest in the West Midlands, where 76% of landlords reported increased tenant demand, followed by 75% saying the same in Wales and 74% in the South East (excluding London).

Record demand

Despite this record demand, one in ten landlords said they sold property since July. This is more than double the 5% of landlords who confirmed they purchased property in the same period.

Similarly, nearly a third of respondents said they plan to cut the number of properties they rent out over the next 12 months.

The NRLA warns that the ongoing imbalance between the demand for, and supply of, private rented housing will continue to erode the purchasing power of tenants.

This will put any gains which result from the Chancellor’s decision to unfreeze housing benefit rates at risk, it claims.

“Would-be renters face a desperate situation as ever-growing numbers seek to access a dwindling number of available homes,” says Ben Beadle (pictured), its Chief Executive.

“The Government needs to accept the folly of a tax system that makes investment in holiday lets more sustainable than long term homes to rent.”