Strong tenant demand means that most landlords are looking at an average void period of 2.9 weeks, however a large proportion (42 per cent) experience even shorter vacant periods.
Paragon Mortgages believes that the downward trend will continue throughout 2008 after 90 per cent of landlords predicted that rental demand will remain largely stable.
"Void periods are inevitable at some point if you are an investor in residential property, but the important factor is that you have the necessary funds to cover the costs of the property during these periods," advised John Heron, director of mortgages at Paragon.
The knock on effect of this strong demand is the corresponding increase in rent, which was pushed up by an average 8 per cent during the last quarter of 2007, totalling nearly 20 per cent for the whole year.
This all bodes well for investors, with Heron adding: "As the housing market cools, professional landlords are in a strong purchasing position. With house prices moderating and rents rising rapidly on the back of continued tenant demand, landlords’ yields will rise over 2008."
