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Demand for private rented property continues to grow in Gloucester as landlords benefit

By Stroud Life  |  Posted: July 17, 2013

  • Tom Smith, SureLet Gloucester lettings manager and Gill Critchson, area lettings manager at The Property Centre

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Demand for private rented property continues to grow in Gloucester with "dramatic decreases" in void periods between tenancies, according to county lettings agents.

Landlords are benefiting from higher yields with the average rental period in the city increasing from 18 to 22 months.

Tom Smith, Gloucester lettings manager at SureLet, said the rental market had been "extremely busy and active".

"Rental enquires continue to increase on a monthly basis and we currently have a vast database of quality applicants ready and waiting to move," he said.

"Landlords have benefited from this as we have seen a dramatic decrease in void periods between tenancies. As soon as a property becomes available we are often experiencing such high demand to view that a new tenancy is secured within 48 hours.

"This has led to landlords maintaining a stable rental valuation and in some cases, they are actually able to increase this."

He added: "As the market has been moving quickly and the demand has remained high, property investors seem to have been more prominent again and therefore new stock seems to be regularly coming to the market."

Gill Critchson is area lettings manager at The Property Centre which has offices in Gloucester and Stroud.

She said this year had brought new levels of demand.

"Since the start of 2013 we have seen unprecedented demand for well-presented rental property," she said.

"However, landlords aren't increasing rent as tenants salaries have stayed at the same level.

"We are seeing increases in yields which is due to decreases in void periods, the average rental period has increased from 18 months to 22 months and good property is being let after an average of just two viewings."

Elsewhere in the UK, demand for private rented property has remained high during the second quarter of the year, according to a recent survey.

Almost all of the 200 landlords, 93 per cent, that took part in Paragon Mortgages' PRS Trends survey, said that tenant demand was either stable or growing.

Landlords are expecting little change in demand for rental property over the next 12 months, with 86 per cent believing it will continue to grow or at least remain stable and just six per cent saying that it will decline, the results show.

Those landlords surveyed also reported an increase in average rental yields, rising to 6.4 per cent from 6.2 per cent in the first quarter of the year. Professional landlords reported an average yield of 6.6 per cent, however private investor landlords saw a more significant increase from 4.7 per cent to 5.2 per cent.

There was a sharp increase in buying intentions too, with 19 per cent expecting to make property purchases. This has risen from 13 per cent in the first quarter.

The most popular property investment choice was terraced houses, followed by flats and maisonettes.

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