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Voids drop as rental demand goes from strength to strength
The average void period has dipped below 2.6 weeks per year according to a survey of the private rental sector by specialist lender Paragon Mortgages.
This is the first time it has fallen below an average of 2.6 weeks since 2002.
Meanwhile yields have grown very slightly in the past three months from 6.3 per cent to 6.4 per cent.
Looking ahead, the majority of landlords surveyed by Paragon say tenant demand is stable but a hefty 40 per cent say demand is growing or even booming.
More than half of landlords expect there to be an increase in potential tenants over the next 12 months.
Despite what has been seen in some quarters as attacks on the private rental sector – especially on landlords – the survey shows that substantial numbers of landlords appear willing to consider expanding their portfolios.
The study also finds that requests for longer-term tenancies of two years or more remain low – most landlords say fewer than 10 per cent of tenants request a longer tenancy.
“Our data is indicative of a market growing steadily and sustainably over the long-term. The data also reveals the changing demographic of those choosing to live in the PRS. This is reflected in the buying intentions of landlords which seem to be shifting slightly away from investing in multi-occupancy blocks, towards terraced housing – often more suited to young families,” says John Heron, mortgage director at Paragon.
