Tenant demand still strong - Paragon

Tenant demand remains strong with more than a third of landlords reporting growing demand for their property, the latest Private Rented Sector Trends report from Paragon Mortgages suggests.

Looking ahead, four in 10 landlords predict tenant demand will be above current levels in 12 months' time, while a similar number (41%) believe current levels will be unchanged in a year's time.

The firm highlights this high level is reflected in low void periods, which stood at 2.75 weeks a year in the fourth quarter. Paragon notes void periods have generally been in decline since the third quarter of 2006 when they peaked at 3.1 weeks a year.

The survey also suggests the average number of properties per portfolio increased to 13.2 from 12.1 in the third quarter.

"There are opportunities for residential property investors with cash to spend to expand their portfolios in the current market and maybe we are starting to see evidence of this," explains John Heron, managing director of Paragon Mortgages.

"This does not necessarily mean that investors think that we have reached the bottom of the housing market. It is more likely that they are spotting bargains in local markets and are purchasing with a long-term view."