According to the latest Private Rented Sector (PRS) trends report for the third quarter, from specialist lender Paragon Mortgages, the average period of time PRS properties spend unoccupied per annum has just slipped to under 2.6 weeks for the first time since 2002.
Yields were shown to be holding steady, creeping up from 6.3% to 6.4%, in line with the stable growth recorded throughout 2015. When asked about growth expectations over the next 12 months, landlords said they were confident that yields would maintain current levels.
As far as demand for rental property goes, more than half of the landlords surveyed reported tenant demand as being stable, while 40% described it as either ‘growing’ or ‘booming’. Expected demand is also positive, with the majority of landlords believing that demand will grow over the next year, while 42% think it will neither increase nor decrease.
The survey also revealed the changing demographics of those choosing to live in the PRS, with landlords reporting an increase in young families with children, and a corresponding decrease in young couples and professionals. However, the demand for longer-term rental agreements has remained low, with most landlords reporting that less than 10% of tenants ask for a longer tenancy.