Paragon: Buy-to-let still strong
03/08/2006
According to Paragon Mortgages' buy-to-let index for July, the private rented property sector remains strong as demand for rented housing continues to rise.
The average rent achieved on residential properties over the last three months has risen by almost 3.5 per cent, or £351 in real terms.
The typical gross income for rental property also rose significantly – up 2.39 per cent in June alone to stand at £10,433 per annum.
"Housing demand is growing, with more single person households, higher numbers of students as well as the effect of immigration," said John Heron, the managing director of Paragon Mortgages.
"The Department for Communities and Local Government forecasts 209,000 households need to be formed per annum, with immigrants accounting for perhaps a third of new households.
"Such newly formed households are most likely to live in rented accommodation [and] in response to this growth in demand for rented properties, landlords are actively building their portfolios in all parts of the country," Mr Heron said.
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