Buy-to-let rent rates stay steady

28 June 2006
According to figures released by Paragon Mortgages, average rents achieved in buy-to-let mortgage properties remain steady this month.

The average landlord was quoted as receiving £10,189 gross rental income on each property in May, the equivalent of £849 a month and a rise of 0.8 per cent on the April figure of £10,113.

Investment property prices also continue to show strength, up 2.9 per cent from £164,247 in April to £168,935 in May. The past 12 months have seen a total investment property price increase of nearly eight per cent.

"With rents stable, tenant demand healthy and market confidence solid, landlords continue to purchase new properties in a generally upward moving property market," said John Heron, Paragon Mortgages' managing director.

"Investor activity has been increasingly strong over the past nine months," he added. "Landlords are experiencing solid demand for rental properties as economic conditions remain sound and interest rates are stable."

"Over the next five to ten years, the private rented sector is expected to grow steadily on the back of a stable economic environment," Mr Heron concluded.

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