introduction
Recent research by Paragon Bank indicates that over 80% of landlords report strong tenant demand for buy-to-let properties. Among nearly 800 surveyed landlords, 43% described tenant demand as ‘very strong’ and 40% as ‘quite strong’. Only 1% observed weak demand, while 12% noted it as average.
Investment opportunities
Regional Variations in Tenant Demand
The study, conducted by Pegasus Insight, reveals regional differences in demand. The South West and North East showed the highest demand, with over half of landlords reporting 'very strong' demand. Conversely, Yorkshire and The Humber exhibited the lowest levels, with 49% describing demand as ‘quite strong’.
Real Estate Investment Necessity
Richard Rowntree, Paragon Bank’s Managing Director for Mortgages, emphasised the ongoing need for investment in rental properties to meet growing tenant demand. He highlighted that increasing rental housing availability is crucial for providing tenants with more choices and maintaining affordable rental prices.
Prime Cities for Buy-to-Let: Manchester, Liverpool, and Birmingham
Manchester, Liverpool, and Birmingham are particularly attractive for real estate investment due to their robust tenant demand and strong economic growth. These cities offer diverse employment opportunities, vibrant cultural scenes, and significant infrastructure developments. Manchester’s thriving digital and media sectors, Liverpool’s maritime industry, and Birmingham’s position as a central transport hub make them hotspots for buy-to-let investors looking to capitalise on high rental yields and long-term capital appreciation.
conclusion
Rowntree also projected that tenant demand will continue to rise, driven by population growth and household formation over the next decade. Ensuring a sufficient supply of rental properties will be essential for keeping rental prices reasonable and meeting tenant needs.
