The PRS Trends Report for Q1 asked landlords for their views on tenant demand, planned property purchases and their views on the wider buy-to-let market. Yields remained at a healthy level with landlords reporting an average yield of 6.2%, which is the same level achieved during Q1 last year.
Void periods also remained low, decreasing further from Q4 2011, dropping from 2.9 weeks to 2.6 weeks. Smaller-scale landlords saw a slight decrease from 2.7 weeks in Q4 to 2.6 weeks in Q1. Professional landlords saw a bigger decrease, dropping to 2.6 weeks in Q1, from 3 weeks in Q4.
A fifth of the landlords who took part in the survey said that they are planning to purchase buy-to-let property in the second quarter. Almost half of those planning to invest (46%) are planning to purchase terraced houses and 31% expect to buy flats or maisonettes.
Landlords’ views on tenant demand remained largely unchanged during Q1, with 44% saying tenant demand was growing or booming and 53% saying they expect demand to increase over the next 12 months.
Nigel Terrington, Chief Executive of Paragon, said:
“The findings of the Q1 Trends survey are interesting and show that it has been a positive start to 2012. Landlords are optimistic about the year ahead and are planning to invest in their portfolios.
“Despite some reports suggesting tenant demand may be falling, landlords are still experiencing decreasing void periods, so the appetite for quality, private rented housing is still very much there.”
