Average rent continues to rise

Permalink: Average rent continues to rise
by Gill Montia

Latest figures from buy-to-let lender, Paragon, show that average rent increased to £11,886 in February, up from £11,604 in January.

The rise has continued throughout March, with data from the Association of Residential Letting Agents showing a 0.27% gain in rental returns during the month.

Strong demand from tenants continues, as potential first-time buyers are either priced out of the property market or unable to secure a mortgage.

In addition, some homeowners who have sold their properties are turning to the private rented sector in the hope of picking up a bargain if house prices continue to fall.

Paragon acknowledges that landlords appear to be one of the few groups benefiting from the global credit crunch but points out that only long-term investors are seeing any real benefits.

John Heron, director of mortgages at Paragon, says: “The message is clear - experienced landlords continue to regard property investment as a sound business … they hold their property investment assets for more than ten years, and decide to buy or sell based on sound commercial considerations rather than short-term signals in house prices or economic sentiment.”