Tenant demand has reached its highest point in two years, with data from Pegasus Insight indicating that 63% of landlords now describe demand in their areas as either 'very strong' or 'quite strong'. This figure is an increase from 58% in the first quarter of the year.
This rise represents the first quarterly increase since Q1 2024, following a two-year period of consistent decline in demand. Almost three in ten landlords, 29%, now report 'very strong' demand, a seven percentage point increase from Q1, while 34% report 'quite strong' demand.
Despite the surge in tenant demand, Pegasus Insight warns that landlords are still more inclined to sell properties than to buy new ones. This trend, combined with increasing tenant demand, is contributing to pressure on the availability of rental homes.
Mark Long, founder and director of Pegasus Insight, noted that the five percentage point rise this quarter suggests a considerable need for rental accommodation. He highlighted that the increase is primarily driven by landlords reporting very strong demand, with only 5% describing demand as weak.