Landlords see a boost in tenant demand
Tenant demand for private rented accommodation is continuing to rise, according to an overwhelming majority of landlords.
A massive 94% of landlords report that tenant demand is stable or growing, said Paragon Mortgages.
Tenant demand continues to keep average void periods short, at 2.7 weeks, with 48% of respondents reporting that their properties stand empty for less than two weeks. Average yields also remained stable at 6.1%.
The number of landlords planning to sell property has fallen, from 25% last year to 17% today, as they start to manage the raft of changes affecting the sector, from increased Stamp Duty to income tax changes.
And they are more optimistic about expanding their portfolio – the proportion looking to purchase buy-to-let property in the first quarter of this year has grown to 13%, up from a record low of 9% 12 months ago.
John Heron, managing director of Paragon Mortgages, said: “With no material improvement in the supply of new housing against a background of strong population growth and household formation, it is no surprise that landlords are continuing to experience strong rental demand. It is promising therefore that there has been some improvement in landlord buying intentions albeit from a low base.”