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Rental return increases for landlords across the UK

Demand for rental properties in the private rented sector is continuing to provide landlords with growing returns according to a new report.

New Record High for Landlords

Demand for rental properties in the private rented sector is continuing to provide landlords with growing returns according to a new report.

The latest research from Paragon Mortgages’ PRS Trends report has found that, on average, the rental return for private landlords has grown to 6.4% over the course of the last three months. The report indicates that the trend is looking likely to continues, with most of the respondents to Paragon’s survey stating that they believed that their rental return would maintain current growth levels over the next year.


In addition to demonstrating the continued growth of the private rental market, the survey also established a change in the attitude of those renting properties.
The report found that the length of time that tenants are committing to changing, with fewer of those renting electing to sign up for long term letting periods. According to 58% of respondents, less than 10% of those renting are seeking to commit to long term tenancies.


The continued disparity between the rental and property ownership thresholds has also led to the maintenance of record low void period figures, with the average time between tenancies now just 2.6 weeks.


Director of Paragon Mortgages, said: “Our latest PRS Trends Survey data is indicative of a market growing steadily and sustainably over the long-term. With low void periods and steady tenant demand, which is expected to continue growing, yields remain on a gradual upward trend and landlords are so confident they will continue to do so.”

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