Mortgage News
Tenant demand continues to climb
Demand for private rented sector property continued rising in the third quarter of the year, according to Paragon Mortgages.
It revealed that landlords are experiencing healthy yields, low void periods and a rise in rental income.
Its Private Rented Sector Trends report recorded that 44% of landlords said tenant demand increased in the third quarter, and just 4% said it declined.
Almost half (49%) said they expect demand to keep growing over the next 12 months.
In addition, 34% of landlords said their rents had risen in the last quarter, with just 4% recording a drop.
There was a continued improvement in the perception of availability of buy-to-let finance, with 27% of landlords saying they thought it was at least reasonably available.
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Nigel Terrington, chief executive of Paragon, said: “Tenant demand has continued to increase for a third quarter, which is perhaps not surprising considering the current squeeze on the UK housing market as a whole.
“More people than ever before are relying on the private rented sector so it is positive to see that landlords are looking to invest in their portfolios and are also diversifying the types of property in which they are investing in order to meet tenant demand.”