The private rented sector continues to grow, according to recent research. The Buy2let Shop looks into the latest statistics.
Paragon Mortgages has released its latest PRS trends report. This data, which was collected over the third quarter of 2015, indicates that landlords have confidence in the market moving forwards, with yields expected to rise alongside tenant demand.
More than half of those landlords surveyed report steady tenant demand over the quarter, while 40% said tenant demand was either ‘growing’ or ‘booming’. The amount of landlords predicting either a stable or growing market in the next 12 months has risen by a further 4% to 89%.
Average yields have been growing steadily throughout 2015, up in the third quarter to 6.4% from 6.3%. Void periods are now at a historic low of 2.6 weeks, with shorter rent periods indicating the buying intentions in the market.
John Heron, Paragon’s director of mortgages, said: “There is room for improvement and it will be interesting to see, in future reports, if macroeconomic concerns about the stock market and the Eurozone, and changes in tax and regulation such as those recently announced by the Chancellor, have an impact on sentiment.
“For the time being however, landlords are seeing steady growth and they expect to see this continue as demand for quality PRS accommodation remains buoyant.”
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