Void periods continue to fall

News Category: Management

The average time private rented properties remain empty between tenants has steadily fallen over the last nine months, new research suggests.

Figures from Paragon Mortgages show that the typical void period landlords experience has dropped to just 2.8 per cent - indicating that tenant demand remains high.

Over the previous four years, void periods had remained stable at between 2.6 and 3.0 weeks for most properties. However, since the end of 2006, they have begun to steadily drop.

Paragon Mortgages said that void periods were likely to fall further after interest rates rose last week, making it more expensive for people to borrow money to buy their own property.

John Heron, managing director of Paragon Mortgages explained: "Private rented property also offers young people an affordable alternative to home purchase, until such a time as they are able to afford a mortgage.

"As interest rates have increased, many young people have chosen to stay in rented accommodation for longer.

"Affordability constraints for first time buyers have become greater and the private rented sector provides an affordable and flexible alternative for people until they are able to purchase a home."

An earlier study by Paragon showed that 63 per cent of landlords think tenant demand will increase in the coming months.