Four in five (81%) landlords across Yorkshire & the Humber are experiencing strong tenant demand, indicating that there’s strong competition for every property in the region.
In contrast, London and the East Midlands see lower figures at 64% and 63% respectively.
Pegasus Insight, which conducted the research, suggested more tenants are staying put, sharing, or remaining with family, in more expensive regions of the UK.
Bethan Cooke, director of Pegasus Insight, said: “Even after an 11% drop, over seven in ten landlords are still seeing strong tenant demand, which shows just how competitive the rental market remains.
“However, the fact that demand has eased for the first time in a while suggests we may be at a turning point. For landlords, this could mean less scope for rent increases in some areas, especially where affordability is already stretched.
“That said, demand levels remain far above those of five years ago, and the fundamentals of the private rented sector 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. Either way, landlords and lenders will be watching closely.”
Overall, tenant demand dropped slightly in the second quarter, but it’s still considered to be at a strong level.