Tenant demand has remained robust in most parts of the country but there are signs this has eased over the past year, according to research from Pegasus Insight.
The firm’s latest Landlord Trends Report for the second quarter found 71% of landlords rate tenant demand as ‘strong’ wherever they let properties.
Of this proportion, 33% see such demand as ‘very strong’.
Elsewhere, 18% of landlords gauged demand as ‘average’ with only 4% describing it as ‘weak’.
However, tenant demand has eased from the 82% of landlords who ranked this as ‘strong’ a year ago.
Regional differences were also apparent in the 794-strong landlord sample Pegasus surveyed for the most recent report.
Yorkshire and Humber topped the table for tenant demand, with 81% of landlords there reporting ‘strong’ demand.
By contrast, London and parts of the Midlands saw much lower ‘strong’ demand levels at 64% and 63% respectively.
Bethan Cooke, director at Pegasus Insight (pictured above), said the contraction from 2024’s data could highlight a “turning point” for tenant demand.
“For landlords, this could mean less scope for rent increases in some areas, especially where affordability is already stretched,” said Bethan.
“That said, demand levels remain far above those of five years ago, and the fundamentals of the PRS are still solid.
“The question is whether this is the start of a sustained rebalancing between supply and demand, or just a short-term pause in the face of wider economic pressures.”
