The team at Experience Invest like to keep up to date with all the very latest property investment news. This week a new report by Paragon Mortgages was released which focused on the health of the private rental sector.
The Private Rented Sector (PRS) Report, picked up coverage on Property Wire who examined the figures for the third quarter of 2015.
One of the things that the report revealed was that yields have grown over the last three months from 6.3% to 6.4%. Landlords were quizzed about this growth and the majority felt confident that it would continue into next year and that rental yield would remain steady.
There’s more positive news from the survey, which reveals that void periods are also at a historic low for the PRS sector. The average time a property is empty is only 2.6 weeks per year, based on the findings of the survey.
The demand experienced by private landlords is also at an all-time high, more than half of the landlords described demand as stable, but 40% explained that demand was growing in their experience.
Demand for longer term rental agreements is low according to landlords who took part in the survey. Landlords are also seeing a change in the demographic of renters, with more families with children looking to rent a property, and a fall in single professionals.
Market growing steadily
John Heron, Paragon’s Director of Mortgages told Property Wire: “The data is indicative of a market growing steadily and sustainably over the long term. With low void periods and steady tenant demand, which is expected to continue growing, yields remain on a gradual upward trend and landlords are confident they will continue to do so.
“The data also reveals the changing demographic of those choosing to live in the PRS. This is reflected in the buying intentions of landlords which seem to be shifting slightly away from investing in multi-occupancy blocks, towards terraced housing, often more suited to young families.”
Here at Experience Invest we’ve been assisting our clients in the residential property sector for over 10 years (You can read about our anniversary on Yahoo Finance), and we know that one of the keys to making a success of being a private landlord is to choose the right property at the right price. This is something that we can offer advice and help on.
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