PRS is Holding Steady according to Paragon’s Latest Figures

08 October 2012 Categories: News

PRS is Holding Steady according to Paragon’s Latest Figures

Paragon Mortgages’ latest PRS Trends survey has shown that landlords are generally happy with the industry as it stands, and that a growing number are considering an expansion of their portfolios within the next 12 months.

The results of the survey also showed the following:

  • 91% of the landlords questioned agreed that tenant demand was either remaining stable or increasing. Only 6% thought it was declining.
  • The average portfolio size now stands at 12.5 properties.
  • The average rental yield is now 6.2%, although professional landlords are experiencing higher average yields than small scale landlords; 6.6% as opposed to 5.2%.
  • 68% of landlords saw no change in their rental income between Q2 and Q3, while 27% saw an increase and only 5% experienced a decrease.
  • The average void period is now just 2.8 weeks.

John Heron, managing director of Paragon Mortgages, said “It has been a stable quarter for landlords. Yields have remained healthy and at a consistent level for the past 12 months.

It is not surprising that landlords are continuing to see high levels of tenant demand and I suspect this will continue into Q4 and the coming year. The PRS is under increasing strain with the growing shortage of homes in the UK, housing policy needs to focus more on motivating private landlords to grow their portfolios to better meet demand.”