A record 65% of landlords have reported rising tenant demand over the last three months, according to a survey carried out by Paragon Bank.  

The lender says this beats the previous all-time high of 62% of landlords reporting this trend in the first quarter of this year, “marking a consistent and significant rise in tenant demand since the low net increase of 14% was recorded in the second quarter of 2020”.  

It adds that 39% of landlords reported that demand “increased significantly”, the highest mark for this metric since it was first tracked in 2011.   

Only 1% of landlords felt that tenant demand had “decreased slightly”, while none said it had “decreased significantly”, a survey first.   

The survey covers the July-to-September quarter, which saw rises in energy, food and interest rates, as well as the government’s mini-budget.   

Paragon Bank mortgage sales director Moray Hulme says: “We’ve seen demand for privately rented homes climb consistently since the pandemic.  

“The fact that the all-time high we reported earlier this year has now been surpassed supports our view that the private rented sector remains an essential component of UK housing provision.  

“Renting appeals to people of different demographics and from all walks of life but the flexibility and relative affordability of rented accommodation means its value is even more apparent at what is an economically challenging time for many.”  

Data group BVA BDRC surveyed 730 landlords during August and September 2022 on behalf of Paragon Bank.