23rd March 2015
The typical annual void period on buy-to-let properties has fallen to its lowest level since 2002 claims new research from Paragon Mortgages.
The specialist buy-to-let mortgage lender has surveyed a panel of landlord customers for 13 years, and the average void period – the length of time between rental property tenancies – reported since the start of 2015 is 2.4 weeks, the lowest since the survey began.
In the last three months of 2014 the average void period was 2.6 weeks, and comparing the first quarter of this year against first three months of 2014, the length of time a landlord has experienced a void has fallen by 14% from 2.8 weeks.
Landlords have been reporting low or falling void periods since 2013, with only a slight fluctuation in mid-2013 when the average climbed marginally to three weeks according to Paragon.
John Heron, director of mortgages at the firm asserted that void periods have been consistently low for some time, which is not unexpected he added given what landlords have being saying about the level of demand from tenants.
He said: “In our survey for the first quarter of 2015, 42% of landlords said in their view tenant demand was either growing or booming and 54% felt demand was stable.
“The housing market is currently experiencing a shift, with more people choosing to live in the private rented sector. This is supported by the figures released this month by the English Housing Survey which show 4.4m households are now privately rented, compared with 3.9m households in the social rented sector. “