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Voids hit five-year low

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The incidence of void periods has declined over the last 18 months, now reaching its lowest level for the last five years

After peaking at 39% during the third quarter of 2020, the proportion of landlords reporting void periods has steadily declined, with Paragon Bank’s latest research highlighting that one in four have experienced empty rental properties during the previous three months.

The survey of 800 landlords, undertaken by BVA BDRC, found that the decrease is driven by a reduction in those with portfolios consisting of six or more properties indicating that one of their rental properties had remained vacant recently.

Splitting the data by region reveals that the greatest incidence of recent void periods was seen by landlords in Wales, with 39% facing at least one empty let. This compares with the South West and East of England where a substantially lower proportion, 23%, of landlords have reported voids.

One of the most notable shifts seen in void incidences can be seen in Central London, further evidence of the capital’s rental market resurgence.

In Q3 2020, driven by pandemic, 68% of landlords operating in Central London recorded a void period, the highest proportion of any region. Today, the region sits below the national average after just 24% of landlords experienced a void within the last three months.

Richard Rowntree, Mortgages Managing Director for Paragon Bank said: “With sustained strong tenant demand and the constrained supply seen in both the rental and purchase markets, it comes as little surprise that void periods have reached a five-year low.

“This reinforces our belief that policy designed to support home ownership, which we support, should be carefully considered so as not to be at the detriment of a private rented sector that is evidently as important now as it’s ever been.

“Put simply, we need more homes and achieving this will require an approach that sees all tenures viewed as solutions, with each catering to a diverse mix of people are different stages of their lives.”

 

For further information contact:

Jordan Lott
Media Relations Manager
Paragon
Tel: 0121 712 2319

 

Notes to editors:

BVA BDRC surveyed 796 landlords during December 2021 on behalf of Paragon Bank.

Paragon lends to private individuals and limited companies and has mortgages suitable for single, self-contained properties, as well as HMOs and multi-unit blocks. Paragon can accommodate higher aggregate lending limits and more complex letting arrangements including local authority leases and corporate leases along with standard ASTs.

Paragon introduced its first product aimed at the professional property investor in 1995 and is a member of UK Finance, the Intermediary Mortgage Lenders Association (IMLA), National Landlords Association (NLA) and the Association of Residential Letting Agents (ARLA). 

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £13 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. Registered