BM Solutions, together with BDRC Continental spoke to 512 landlords to discover 84 per cent view their rental properties as a supplement income to their pension. A relatively small percentage then plan on selling off their portfolio when they reach retirement age.
BM Solutions head of sales Phil Rickards says: “The private rental sector remains an alternative source of long term investment for landlords for later life and this does not look like it is set to change. Whilst rental yields have dipped slightly, they still remain at the high levels we have seen over the past few years.”
Rental yields fell 0.5 per cent to 6.2 per cent in the final quarter of 2012, according to the survey findings. The strongest performing region was East Midlands with an average yield of 7.1 per cent while the weakest was Yorkshire and Humber, returning 4.6 per cent.
In the fourth quarter of 2012, the average number of tenants in arrears fell to 2.4, down from 3.3 in the third quarter. The number of landlords experiencing rental arrears fell to the lowest level since the second quarter of 2010, at 41 per cent.
The average amount owed per tenant was £2,613 – £247 higher than the £2,366 reported for the third quarter of 2012.
The average duration of a void period fell to 60 days over the course of 2012 while the number of landlords experiencing void periods in the last three months of the year dropped 4 per cent to reach 33 per cent.
The greatest proportion of void periods was found in the North East, at 53 per cent, while the lowest was in Central London, with 20 per cent.