Nigel Terrington, Chief Executive of Paragon Bank, has highlighted growing pressure on the UK’s private rented sector due to population growth and high levels of immigration. He told The Times that a shortage of landlords is contributing to the housing crisis, with demand outstripping supply in many areas and driving up rents.

Terrington noted that many new arrivals to the UK are more likely to rent than buy, increasing strain on the PRS. He called for more encouragement for landlord investment rather than policies that might lead to disinvestment from the sector.

He also pointed to high competition for rental properties – with reports of 15 to 20 applicants per listing – as further evidence of a market under strain. This is particularly acute in student-heavy towns and cities.

Terrington observed a market shift from smaller-scale landlords to more professional investors, which has supported Paragon’s 25% growth in buy-to-let lending.

Regarding the forthcoming Renters’ Rights Bill, Terrington stressed the importance of a well-managed implementation period. He emphasised that both landlords and tenants will need clarity and communication, especially with major changes such as the abolition of Section 21 and the banning of rental bidding wars. He also called for policy stability to support long-term investment decisions.