25th
Mar 2014
From a recent panel of 1,000 landlords that took part in a piece of research that was carried out for a National Lender, it was reported that 34% of those who took part had experienced a void period in the last three months of 2013, whilst in the previous quarter 36% had an empty property.
This positive trend was also reflected by the average length of a property staying empty in the second quarter of last year, was 69 days which fell to 59 days in the last quarter of 2013 (It had also fallen in the third quarter to 64 days).
Another interesting finding was how would the landlords compensate for the lack of earnings? 17% of those with a single property said they would have to rely upon their savings and another 19% would find the money elsewhere.
Those with more than one property gave feedback that 25% would be able to compensate a void period on a property from the revenue received from other properties.16% said that they would like to feel that they could cover it from savings accrued whilst the property was in occupancy and 10% said they would simply absorb it.
John Heron, director of mortgages, said: “It is good to see that void periods are less frequent and getting shorter. What is also important to note is the resilience of landlords when coping with a shortfall of income on an individual property,
"This provides further insight into just why the credit quality of buy-to-let lending is so much better than regular mortgages.”
The research also highlighted that overall in the last three months of 2013 non payments in rents had fallen, however 28% of the landlords were still worried about what the next twelve months may bring in regard to arrears.
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