Landlords with properties in Central London reported the highest levels of tenant demand across England and Wales in Q4 2022, new research published by Paragon Bank has found.
Based on the opinion of 750 landlords, the survey found that 94% of respondents with properties in Central London saw strong levels of tenant demand, while the remaining 6% reporting levels as stable.
The research suggested that the appeal of properties centrally located within the capital has rebounded since the Covid-19 pandemic.
Increased tenant demand in Q2 2020 was seen by just 12% of landlords operating in Central London – this figure has since jumped to 90% in Q4 2022, the research found.
Other regions that saw strong levels of tenant demand include the East and the North East, which saw 92% and 90% of landlords report high demand respectively.
Richard Rowntree, managing director for mortgages at Paragon Bank, said: “A lot was said about the impact of the pandemic on the Central London rental market, with a number of factors such as the rise in home working and increased desire for access to green space leading to demand for centrally located homes apparently falling off a cliff.
“While I feel that this trend was more evident amongst owner occupiers and overstated in terms of the effect on the rental market, it is nevertheless interesting to see landlords in Central London report the highest levels of tenant demand currently and during the previous three months.
“In addition, we see that the overall record high level of increased tenant demand reported in Q3 2022 continued into the final quarter of last year.
“This is unsurprising given the pressure on household finances and the relative affordability of rented homes, reinforcing the need for an environment that encourages investment in the private rented sector.”
