New research by Paragon Mortgages shows that the average annual void period for residential landlords in the UK has fallen to its lowest level since 2002. The average void period reported in the first quarter of 2015 was just 2.4 weeks, the shortest period yet recorded by the survey.
This marks a fall of 0.2 weeks since the final quarter of 2014, and a fall of 0.8 weeks (14%) since the first quarter of 2014. Indeed, landlords have been reporting declining void periods since 2013, with only one minor interruption in the summer of 2013 which brought the average up to 3 weeks.
The continuing decline of void periods is no surprise considering the survey also tells us about tenant demand. It was found that, in the first quarter of 2015, 42% of landlords view tenant demand to be either growing or booming, while 54% said demand was stable.
John Heron, managing director of Paragon Mortgages, said: “The housing market is currently experiencing a shift, with more people choosing to live in the private rented sector. This is supported by the figures released this month by the English Housing Survey, which show 4.4 million households are now privately rented, compared with 3.9 million in the social rented sector. This change in housing dynamics appears to be a continuing and long term trend.”