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Tenant demand continues to grow

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Fri 11 Dec 2015

Tenant demand continues to grow

 

Paragon Mortgages report that tenant demand has continued to grow across the country in quarter three of 2015.

 

The data also shows that rental yields – annual rental income as a percentage of property value – have remained at the same levels seen throughout 2015.

The survey found that yields averaged 5.6% nationally in quarter three.

The greatest number of landlords (17%) reported yields between 3% - 4%, while one in ten landlords reported yields of 10% or more. Yorkshire and the Humber reported the highest yields in quarter three (6.1%) with outer London reporting the lowest (4.8%), despite outer London having the second largest increase in levels of tenant demand.

On tenant demand, the East of England region has performed best in quarter three, with 52% of landlords reporting an increase in demand. This figure was just 31% for the North East – with a national average of 41% of landlords saying demand had increased.

 

This figure represents a strong year-on-year increase in tenant demand across several regions since quarter three 2014 with the demand in the North East having increased from 23% to 31% and in outer London from 42% to 48%.