The average void period dipped below 2.6 weeks per annum in Q3, according to Paragon Mortgages’ latest report.
The figure remains historically low, and is the first time it has fallen below an average of 2.6 weeks since 2002.
In 2010, the average figure was at a high of 3.4 weeks per year.
In its quarterly survey Paragon also reports that average yields have grown over the past three months from 6.3% to 6.4%.
Looking ahead, the majority of landlords surveyed by the lender said they expect yields to remain stable over the next twelve months, maintaining current levels.
More than half of landlord respondents described tenant demand as ‘stable’, with more than 40% saying that demand is either ‘growing’ or ‘booming’.
The prospects for future demand are also positive, with more than half of landlords expecting an increase in potential tenants over the next twelve months, compared to 42% who expect demand to remain stable.
Of participating landlords looking to expand their property portfolio, 43% indicated they are looking to invest in terraced houses, up from 38% in the previous quarter.
Meanwhile the number of landlords seeking semi-detached properties has fallen from 38% to 27%.
The study also found that requests for longer-term tenancies of two years or more remain low, with 58% of respondents saying less than one in ten tenants ask for a longer tenancy.
“Our 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 confident they will continue to do so,” says John Heron, Director of Mortgages at Paragon.
“The data also reveals the changing demographic of those choosing to live in the PRS. This is reflected in the buying intentions of landlords which seem to be shifting slightly away from investing in multi-occupancy blocks, towards terraced housing – often more suited to young families,” he adds.
