The proportion of landlords who believe tenant demand is growing or booming has increased to the highest level in almost a year, according to Paragon.
Research revealed by the banking group’s PRS Trends Report for Q3 2019 shows 29 per cent of landlords now think more people are looking for rental homes.
According to the report, this reverses a substantial drop in Q1 2019 (21 per cent) and returns the indicator to the same level it has roughly maintained since Q2 2017 (average 30 per cent).
It also marks the first time that the proportion of landlords saying tenant demand is growing or booming has increased in consecutive quarters since Q4 2017.
Elsewhere in the report, portfolio landlords continue to drive an increase in portfolio size and value, with the overall average portfolio now at 13.2 properties and worth £1.82 million – the second consecutive, record average value.
However, the report reveals landlords continuing to take a cautious approach to their investments, with average gearing remaining historically low at 33 per cent loan-to-value and mortgage payments as a proportion of rent unchanged in Q3 2019 at 25 per cent.
John Heron, director of mortgages at Paragon, says: “A clearer picture is starting to emerge of the impact that multiple government and regulatory interventions are having on the PRS.
“In broad terms, landlords have been buying fewer properties and selling more at a time when there has been a resurgence in tenant demand.”