The figures come from the latest BM Solutions/BDRC Continental Landlord Panel which reveals that more than half of landlords (52%) reported an increase in demand from tenants at the end of 2011 but that fell to 35% at the end of last year.
The number of landlords who say there's been 'no change' in demand is growing but the rental market is being seen as profitable and stable which is leading to more landlords to invest further in their portfolio.
Landlords create profitable businesses
The figures from the survey show that 80% of landlords make a profitable full-time business from their letting activities and even 75% of amateur landlords who are using a rental property to boost their income are doing more than breaking even.
Phil Rickards, of BM Solutions, said that elements of the UK's rental market will fluctuate but it is perceived as being stable overall and is increasingly attracting professional and amateur landlords.
He added: “Landlords can spread the risk of tenants in arrears and void periods by increasing their portfolio which is important for a long-term investment rather than when focused on short-term gains.”
The survey also reveals that:
• Tenant arrears have fallen and are now at a three year low of £1,499
• The number of void periods is also in decline, with just 4% of landlords saying they had one void in the past three months, a fall of 2%.
• The average void period is also falling, with landlords saying it is now five days shorter be an average of 59 days over the last quarter
Areas with the best BTL yields
The survey also shows that the best region for performance was in the north-west, with yields of around 6.4% with the lowest yields being seen in the south-west and London, of 5.6%.
Landlords are also opting to increase rents for new tenants, with three out of five landlords saying they did so to match local market prices.
Perhaps, the only blight in the survey is the drop in confidence by landlords in the buy to let sector which has fallen from a six-year high which was reported at the end of 2013. Now 63% landlords say they are confident about their business prospects in the future which is down from 68%.
However, landlords are increasingly optimistic about the wider economy as it grows and the opportunities it will bring.
