Paragon figures illustrate growing rental income for landlords

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New figures from Paragon indicate that strong tenant demand has pushed the average rental income generated by landlords to a record high of £11,066 during the month of October.

This is 10.2 per cent higher than a year ago, and underline the skills of buy-to-let investors who chose to buy property offering "sustainable and profitable income over the long-term".

Paragon's October Buy-to-Let Index also shows that yields have remained steady at six per cent, with total annual returns on a property bought 12 months ago averaging 15.5 per cent. This is up from 14.2 per cent in September.

"Much of the recent negative media comment on the buy-to-let sector has confused genuine well-researched buy-to-let investment with property speculation," said Paragon's director of mortgages, John Heron.

"There is solid and growing demand for decent, affordable rented homes in all parts of the country, but it is essential landlords purchase the type of property that meets tenants' needs and expectations.

"They want homes that are conveniently located for their place of work or study, with good transport links and local amenities. These figures show that professional landlords continue to invest in the types of property where there is strong and sustainable tenant demand."

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