Average rent 'is steadily increasing'

News Category: Management

Landlords and letting agents have reported that rents and tenant demand have remained strong over recent months, suggesting that the buy-to-let sector remains buoyant.

A report from Paragon Mortgages shows that average rents in the UK rose for the sixth consecutive month in May.

During the month, the average rent reached £10,702 - one per cent more than in April and 9.7 per cent higher than in November last year.

"Rents continue their upward trend," commented John Heron, managing director of Paragon Mortgages. "It may be that higher borrowing costs are feeding through into rises in rents, but more likely it's a function of the strength of tenant demand.

"The number of people who want to rent continues to grow - due to a range of social, economic and demographic factors, including growth in the student population, more single person households and inward migration."

Indeed, 63 per cent of landlords reported that demand for their property was either stable or growing. As a result, many landlords said that they were looking to expand their portfolio of property.

Recently, ARLA reported that the private rental sector was set for continued growth. Its chief executive, Adrian Turner, said: "The private rented sector is continuing to provide choice in housing and a safety valve for the housing market, particularly now, at a time of mixed expectations for future strong rises in house prices."