Everest industry news
Average rents rise 12% in six months
02 May 2008
Further good news for landlords is that average rents have risen by 12 per cent in the last six months, figures from Paragon Mortgages reveal.The specialist lender's latest Buy-to-Let index shows that demand for rented accommodation remains high, with the typical rent up four per cent in the past quarter alone.
A third of landlords polled by Paragon said that tenant demand is "expanding rapidly", while a further 58 per cent believe the rental market is both strong and stable.
The average annual rent reached £12,041 in March, up from £11,886 in February, with yields remaining steady at 6.3 per cent for the third consecutive month.
"The backdrop for buy-to-let remains positive across the country," said John Heron, Paragon's director of mortgages.
"Potential residential purchasers are reluctant to buy in the current market or are unable to secure a mortgage and this is fuelling extra demand for rented accommodation.
"The average rental property now generates in excess of £1,000 per month and this upward trend looks set to continue in the future," he concluded.
As more consumers become aware of their household's carbon footprint, landlords can generate greater interest in their rental properties by adopting the latest green technologies.
The Energy Saving Trust recommends installing a new boiler and adding extra insulation to increase a home's fuel efficiency, as well as fitting double glazing to help minimise heat loss.
