Paragon reports 2.4% rise in rental incomes

Permalink: Paragon reports 2.4% rise in rental incomes
by Gill Montia

Paragon, the buy-to-let lender, has reported a monthly rise in rental income in England and Wales of 2.4%, for February.

The increase brings the average rent to £11,886 which is 15% above the average for February 2007.

On a regional basis, February saw average rental income for London rise to £20,574; in the south-west to £15,970 and in East Anglia to £12,738.

Last month also saw capital gain rise by 1.5%, bringing the average value of an investment property to £187,597, compared with £184,908 in January. Gains were highest in London, the south west and East Anglia.

Rental yields, which remained flat in January at 6.3%, rose 0.3% in February.

Landlords with properties in the north-west and the north of the country saw the largest gains, with yields rising to 7.6% and 7.3% respectively.

According to Paragon, 13% of landlords own more than 100 properties and amateur buy-to-let investor remaining very much in the minority.

In the current market conditions this situation will be maintained as larger landlords are better placed to secure mortgage funding.

John Heron, Paragon’s director of mortgages, believes that professional landlords have remained steady in their outlook throughout the credit crisis and predictions of a housing market crash.