Typical rents have grown by 6.5 per cent in the past three months, according to a new buy-to-let study from a specialist mortgage lender .
Data from financial services provider Paragon Mortgages indicates that average rents in April 2007 hit £10,591, up from £9,942 in January.
Meanwhile, total returns grew from eight per cent to 11.6 per cent over the same quarterly time interval.
John Heron, managing director of Paragon Mortgages, has told prospective buy-to-let speculators that the figures reflect increasing demand for rental properties .
" Investors are encouraged by the strength of tenant demand, which enables them to increase rents on existing tenancies when they are renewed and apply a higher rent to new tenants," he explained.
Recently, Mark Blackwell, head of corporate and specialist lending at mortgage lender Cheltenham and Gloucester, refuted suggestions that the buy-to-let sector could be damaged by rising interest rates .
Speaking after it was confirmed that the base rate had risen to 5.5 per cent, Mr Blackwell argued that the majority of landlords with buy to let mortgages saw rental properties as a long-term investment rather than a short-term way of making money .
Paragon Mortgages reports 6.5 per cent quarterly rent growth
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Paragon Mortgages reports 6.5 per cent quarterly rent growth
Fri, 18 May 2007
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