Rental sector conditions stabilised last month
Published: 31-Jul-2008
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The UK rental sector stabilised during June, with rent rises moderating despite growing demand for accommodation.
Paragon's latest survey reveals that rental yields remained at 6.4 per cent over the course of the month - the same level as during May.
Meanwhile, rents, which had been rising dramatically, stabilised during the month and currently stand at just under £1,000.
This figure is, however, some 9.3 per cent higher than in June last year.
John Heron, managing director of the lender, said: "For the vast majority of landlords, a slow housing market is nothing new. They recognise the counter-cyclical nature of buy-to-let and many landlords have held property through previous housing cycles.
"Falling prices are spooking first-time buyers and they are delaying house purchase, with tenant demand at high levels as a result."
The areas where landlords experienced the best rental yields during June were revealed to be Wales, the north east and the north west, which saw yields of 7.6 per cent, 7.4 per cent and 7.3 per cent respectively.
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