Landlords' rental yields soar
News Category: Industry News
Published: 25-Jan-2008
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Rents have risen sharply due to the growing demand for rented accommodation.
That is according to independent UK lender Paragon Mortgages, which has released its January buy to let index.
The report found that rental incomes increased by 2.5 per cent in January and that on average tenants are paying £965 per month.
John Heron, managing director of Paragon, commented: "There's been a fall in consumer confidence in recent months, but this appears to be to the benefit of established landlords."
He remarked that 2007 had proved "a strong year" for landlords, with their total annual returns averaging over 21 per cent - three times the level obtained in 2006.
"Rents have been rising at the fastest rate we have seen since the buy to let index was first published in 2001.
"With a cooling in the rate of increase of house prices, yields havealso picked up this month and we expect that trend to continue throughout 2008."
Mr Heron concluded that buy to let will remain "resilient" during periods of decreased economic growth.
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