Against the background of Shelter calling for a cap on rents in the private rental sector, a report out today from Paragon highlights the tension between increased demand and pressure on families caused by upward movement on rents.
More than four out of ten landlords (44%) said tenant demand increased during the third quarter and just 4% thought it declined. When asked for their forecast of tenant demand for the next 12 months, almost half of landlords (49%) said they expect it to continue to increase. Rental income remained healthy for a third consecutive quarter with 34% of landlords reporting an increase and only 4% saying it had decreased. Of those landlords who achieved an increase in Q3, 11% said it was between 2% and 4%.
Nigel Terrington, chief executive of Paragon, said: “Tenant demand has continued to increase for a third quarter, which is perhaps not surprising considering the current squeeze on the UK housing market as a whole. “More people than ever before are relying on the private rented sector, so it is positive to see that landlords are looking to invest in their portfolios and are also diversifying the types of property in which they are investing in order to meet tenant demand.”
Here at College and County, we can concur with much of the findings; our rents are increasing at between 2 and 4% per annum at the moment, and demand particularly for one and three bed properties far exceeds supply. There has been a flurry of investment purchases in Oxford to be sure to meet the February deadline for establishing use as an HMO.