Landlords are experiencing fewer void periods than at any point in last decade, helping them to achieve a greater return on their property.
Figures from property specialist Leaders show just six per cent of rental properties have been the subject of a void period in the last year, meaning the vast majority of landlords have enjoyed rental income for at least 12 consecutive months.
A new study by Paragon Mortgages also found the average void period fell below 2.6 weeks per annum in the third quarter of the year - the first time since 2002 that it has been this low. As recently as 2010, the average void was 3.4 weeks per year.
Jane Wilkinson, lettings director at Leaders, says: “It is great news for landlords that void periods are at a 13-year low, with the average rental property being occupied for almost 50 weeks each year.
“This means landlords can be confident of achieving a healthy return on their investment, receiving regular income and being able to select a quality tenant from a high number of applicants. Low voids and high demand typically generates excellent yields, which is exactly what we are currently seeing.”
Indeed, the Paragon Mortgages research found average yields have risen over the last three months to 6.4 per cent, up from 6.3 per cent.
Its survey of landlords also painted a positive picture of the sector, with more than half of respondents describing tenant demand as ‘stable’, while over 40 per cent suggested it is either ‘growing’ or ‘booming’.
In excess of 50 per cent predicted the coming year will once again witness an increase in the number of tenants, while 42 per cent suggested this group is set to remain at a similar level.
Jane adds: “The prospects for the lettings market are strong, making it a great time to let a property or to complete a buy-to-let investment. Yields remain on an upward trend and tenant demand is widely expected to continue to grow, so it is certainly a landlord’s market right now.”
For more information on all aspects of letting a property and for expert insight into your local market, please contact your nearest Leaders branch.