Specialist lender Paragon recently carried out a survey of the private rental sector. It showed a few interesting facts:
- The average void period has dropped below 2.6 weeks per year, the first time this has happened since 2002
- Yields have gone up slightly over the last 3 months from 6.3% to 6.4%
- Landlords surveyed said that demand was stable although 40% said it was increasing
- More than half of those surveyed expected to see an increase in tenants looking over the next 12 months.
- Substantial numbers of Landlords are considering expanding their portfolios.
Perhaps the most interesting fact to come out of the survey is the change in demographic of people choosing to rent. This, in turn, is starting to affect the way Landlords are thinking and buying. More are choosing to move away from multi block properties and looking at more terraced housing, suitable for young professional couples and families.