Rental Property in Bedfordshire and the South East of England Hits a 2 Year High
The demand for rental property has hit a 2 year high according to new figures published by Paragon Group. The report into Private Rented Sector (PRS) Trends indicates that a growing number of landlords are reporting increased levels tenant demand – the highest level for two years.
It would seem that tenant demand is seeing little signs of a slowing down and there may be major implications for the UK rental sector and supply generally cannot be addressed.
Forty percent of landlords indicate that tenant demand grew further during the last quarter and the trend of growing levels of demand has now been on the increase for 6 consecutive quarters.
Further positive improvement was reported in confidence levels with 17% of landlords saying they were more optimistic regarding property portfolio performance. They have also reported increased confidence in the availability of buy let mortgages with 1 in 5 landlords reporting that finance was now widely or reasonably available.
In addition, the number of landlords reporting mortgage restrictions fell from 29% in the third quarter to 26% in the fourth quarter.
The report suggests rental yields remained static during the period on average around 6.1%. The average void period also fell for the second quarter in a row to an average of 2.9 weeks a year.
There appears growing evidence that tenant demand continues to strengthen and rental yields are holding up over the past year. This healthy and stable environment is keeping confidence amongst landlords high. The housing market may be offering some buying opportunities and portfolio landlords may seek to take advantage.