LONDON - Buy to let properties continue to have a field day on the investment markets even though there was a marginal fall in September, lender Paragon Mortgages said in its monthly buy to let index calling the prevailing conditions the "best letting conditions in years."
Landlords have seen rents rise by almost £1,000 in the last 12 months to £10,521 from the £9,524 at the same time last year. This is an increase of nearly 10.5 percent or more than three times greater than the current rate of inflation, Paragon Mortgages said. Greater London had the highest rents with an average of £14,251. The South West with an average rent of £12,396 came a close second.
Wales and East Anglia with £8,854 and £8,859 respectively were at the lower end of the rent spectrum. "There’s been growing evidence that landlords are willing to engage in transactions and that is having the effect of moving prices of investment properties purchased gently upwards," said John Heron, managing director, of Paragon Mortgages.
"This month sees a modest easing of prices and rents, attributable to a 'spike' in the July average caused by some unusually high value transactions completing in the month. August is in line with the longer term trend, however."
Total yields made by landlords over the last year increased by 20.27 percent or £28,743 before tax. These are impressive figures when the fact that the housing market is on the wane is taken into consideration. "The summer is traditionally a somewhat quiet time in the housing market, but with renewed confidence, good tenant demand and the UK’s long term structural shortage of decent accommodation, it’s no surprise that investors continue to buy," Heron concluded.
Posted
on : Thu, 06 Oct 2005 08:25 GMT | Investments News
By : Pippa Fielding
|
