14-09-2006
Good news for buy-to-let landlords
The buy-to-let market is continuing its upward trend, with yields, property values and rental income all rising.
New figures from Paragon Mortgages show that the buy-to-let market is still prospering with rents rising by 6.39 per cent from £9,954 in November to £10,590 in February.
The largest increase was in the East Midlands, where average rental income reached £9,545 in February, up from £8,993 the previous month.
The south-east and south-west also enjoyed rises of 5.80 and 5.39 per cent respectively and smaller increases in rental income were seen in Wales, East Anglia, Yorkshire and Greater London.
Property values also increased over the quarter by 5.72 per cent.
John Heron, managing director of Paragon Mortgages, says that the ongoing demand for buy-to-let housing has prompted growth in investor confidence.
He explains that the number of UK households is growing steadily and that many new households will be reliant on rented accommodation.
In addition, he says that increasing house prices are making it harder for first time buyers to get on the property ladder.
"This will ultimately lead to an increase in the demand for rented accommodation which is good news for the buy-to-let market," Mr Heron concludes.
