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Rental market showing sustained stability
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Encouraging signs for the rental market have come with the latest Private Rented Sector trends report from Paragon Mortgages.
The latest trend report for Q3 of 2015 suggests that the rental market remains healthy, taking in key indicators such as rental yields, void periods and tenant demand.
Growth
Data from the report indicates that average rental yields have risen slightly over the last three months from 6.3% to 6.4%. This slight increase is in line with the growth seen throughout 2015. When asked to forecast what would happen over the next 12 months, landlords were confident over sustained stability.[1]
There was also good news in terms of void periods, with the report pointing out that the average period of time that privately rented properties stood unoccupied was a historically low 2.6 weeks. Tenant demand is healthy, with more than 50% of landlords describing this as stable, while 40% said it was booming.[1]
Over half of landlords think that demand will increase over the next 12 months, in comparison to 42% who believe that it will remain stable.
In addition, the report shows that there is an increase in families with children moving into the private rental sector, with a decrease in the number of young couples and professionals. Demand for long-term rental agreements however remains fairly low.[1]
Rental market showing sustained stability
Sustainability
‘Our latest PRS Trends Survey data is indicative of a market growing steadily and sustainably over the long-term,’ said John Heron, Director of Paragon Mortgages. ‘With low void periods and steady demand, which is expected to continue growing, yields remain on a gradual upward trend and landlords are confident they will continue to do so,’ he continued.[1]
Heron also said that the data, ‘reveals the changing demographic of those choosing to live in the PRS.’ He feels this is, ‘reflected in the buying intentions of landlords which seems to be shifting away from investing in multi-occupancy blocks, towards terraced housing-often more suited to young families.’[1]
[1] http://www.propertyreporter.co.uk/landlords/rental-market-remains-healthy-says-latest-report.html
