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Buy-to-let 'plugs housing hole'

27 July 2007
The buy-to-let sector has seen an increasing number of households find affordable accommodation, it has been claimed.

According to Paragon Mortgages, the industry has enjoyed steady growth over the first six months of 2007, although annual rents went up by 13 per cent over during the same period.

Paragon's buy-to-let index for July has showed that property values have also gone up, this time by 10.5 per cent from the £162,776 recorded in June to £179,793.

And Nigel Terrington, chief executive of the firm, attributed the growth in the sector to high demand.

"The private rented sector has expanded in response to a growing need for decent, affordable accommodation, especially in response to a dwindling supply of social housing," he said.

Meanwhile, mortgage lender Bradford & Bingley has commented that the buy-to-let sector will outperform the larger mortgage market within the next 12 months, according to the BBC.

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