New research has found that landlords saw increased tenant demand in most regions in the third quarter, but there was evidence of a slowdown in central London.
The Leeds Building Society looked at the latest market research from BVA BDRC to understand the views of landlords across the country.
Demand in Q3 was highest in the North West and South West, where 44% of landlords reported an increase in demand, East Midlands (40%), South East (except London, 38%), the North East and Yorkshire and the Humber (both 38%).
However, landlords with property in central London continued to be the hardest hit, with only 16% reporting an increase in tenant demand, and 58% reporting a fall in demand.
According to the BVA BDRC findings, landlords have seen a recent increase in both voids and void duration, with more landlords (25%) saying they plan to reduce the amount of properties in their portfolio next year.
Meanwhile, landlord profitability remained high in Q3, with 83% reporting they made a profit, according to the research.
Matt Bartle, head of products at Leeds Building Society, said: “It will be interesting to see whether the trends we have seen in Q3 continue and whether landlords make changes in their portfolios that reflect this changing demand and start to shift their attention away from London to other regions.
“Since lockdown we have seen a strong recovery in the Buy to Let market to pre-lockdown levels, with a surge in purchase activity. This is likely to be down to a number of things such as pent up demand and landlords looking to take take advantage of the stamp duty holiday.
“Considering the changes that coronavirus has brought to all our lives it’s not surprising to see landlords reviewing future plans for their property portfolios as tenants’ needs and priorities change.”