UK Tenant Demand Remains Strong: Where Smart Investors Are Focusing in 2025

Fresh insights from Paragon Bank reveal that tenant demand in the UK’s rental market continues to surge, offering compelling opportunities for savvy buy-to-let investors. With over 80% of landlords reporting strong demand, the data suggests now is a strategic time to grow your rental portfolio—especially in regional cities where demand is outpacing supply.

Robust Demand Confirmed by Landlords Nationwide

According to a survey conducted by Pegasus Insight on behalf of Paragon Bank:

• 43% of landlords describe tenant demand as “very strong”
• *40% say it’s “quite strong”
• Only 1% reported weak demand, underscoring the market's current strength

The message is clear: tenants are actively seeking quality rental homes, and investors are in a prime position to meet that demand.

Where Demand Is Highest

The research also uncovered notable regional variations:

• South West & North East: Over half of landlords here report “very strong” demand
• Yorkshire & The Humber: While demand remains healthy, 49% classified it as “quite strong”, suggesting slightly more competition

Understanding these trends helps investors identify where demand is peaking and where opportunity is ripening.

A Market Calling for More Supply

Richard Rowntree, Managing Director of Mortgages at Paragon Bank, stresses the importance of further investment in the private rental sector:

"Tenant demand will continue to grow over the next decade, driven by population growth and increased household formation. To keep rental prices affordable and options plentiful, we need more high-quality rental stock."

For investors, this highlights the dual benefit of entering the market now: capitalise on rising rents while contributing to a growing need.

Investment Hotspots to Watch: Manchester, Liverpool & Birmingham

These three powerhouse cities stand out for their strong fundamentals:

• Manchester: A booming digital economy, media hub, and student population fuel long-term rental demand
• Liverpool: Benefiting from regeneration and maritime industry growth, this city offers excellent rental yields
• Birmingham: With HS2, a growing financial sector, and central UK location, it continues to attract professionals and families alike

Each city offers diverse employment opportunities, cultural vibrancy, and infrastructure investment, making them top targets for investors seeking long-term gains.

Capitalise on Tenant Demand – Invest with Confidence

At Regents Property, we identify high-demand, high-growth areas and deliver tailored buy-to-let opportunities that align with your investment goals. Whether you're looking to enter the market or expand your portfolio, now is the time to act.

Explore our latest property investment opportunities and start building a stronger future today.

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