Its PRS Trends Report for Q3 2019 revealed 29 per cent of all landlords say tenant demand was ‘growing’ or ‘booming’ during the third quarter of the year. This represents the highest proportion in nearly a year and the first time there has been two quarters of reported growth since 2017.
It also follows on from Q1 2019 when 21 per cent of landlords reported a decline in demand from tenants.
Director of mortgages at Paragon John Heron said: “Landlords have been buying fewer properties and selling more at a time when there has been a resurgence in tenant demand.”
Landlords are also increasing the size of their portfolio, with buy-to-let owners having an average of 13.2 properties on their books, worth a total of £1.82 million.
Mr Heron noted that this positivity reflects the August residential survey from the Royal Institution of Chartered Surveyors (Rics).
In this report, near-term sales expectations dropped from a net balance of -4 per cent to -23 per cent, weakening nearly everywhere around the UK.
This declining demand from buyers means more people are likely to be looking at properties to rent rather than purchase.
Rics’ chief economist Simon Rubinsohn said it is even resulting in so much activity in the lettings market that “demand is outstripping supply”.
He warned this could mean “the pressure is for rents to continue moving higher”, which could encourage potential renters to find a property to let sooner rather than in a few months’ time.