Landlords confident as rents remain strong
- 2nd July 2008
- Landlord Property News
The growth in tenant demand for rental property remains strong as void periods fall to their lowest level since 2005.
A recent survey carried out by buy-to-let mortgage provider, Paragon, says that 54% of landlords polled believed that demand for rented property would continue to rise over the coming year.
Managing director of Paragon, John Heron, says: “Potential home buyers are postponing purchasing decisions because they either feel uneasy about the current market or they simply can’t get a mortgage, so they are renting.
“This is putting an increased strain on the private rented sector’s stock.”
The average void period for a rented property now stands at 2.7 weeks and has been falling since the middle of last year. Paragon’s Buy-To-Let Index also confirmed that yields are at their highest level since February 2007.
Mr Heron believes that the private rented sector is playing an important role in filling the UK’s housing gap. He says: “With fewer properties being constructed as developers cut back, demand for rented property is likely to be strong for the foreseeable future.”
Demand for rented property is likely to be strong for the foreseeable future.
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