In the midst of the current economic climate, the demand for rental properties has seen a significant upsurge, the latest studies show.
A recent 2023 Landlord Report has seen 62.24% of buy-to-let landlords state they have experienced an increase in demand for their rental properties over the last 12 months.
The research comes courtesy of specialist property finance broker Finbri where an associate has highlighted how owing to the “continued instability of the mortgage market and the UK economy, rental property demand is rising. Due to prolonged uncertainty, first-time buyers are postponing entry into the market.”
Landlords in Central London report even higher figures – with an astonishing 94% of landlords reporting increased demand according to a survey undertaken by specialist buy-to-let lender Paragon Bank.
In turn, rooms in HMO’s (housing in multiple occupations) have seen their rents reach record heights as tenant demand far outweighs supply. SpareRoom outlined how tenant demand hit a nine-year high last August – which corresponds to the wider rental market witnessing a 23% year-on-year growth in demand for rental properties.
This heightened demand shows no sign of slowing down anytime soon as tenants withhold trying to get onto the property ladder at present. In fact, three-quarters of tenants in Finbri’s survey believe they will not own property in 2023 – meaning renting is more likely.