31 Jul

Buy-to-let market remains strong

Buy-to-let market remains strong

According to the latest Paragon Mortgages Buy-to-Let Index, yields in the buy-to-let sector remained steady at 6.4 per cent in June, stabilising just shy of £1,000 a month.

This follows months of steep increases and yields are now 9.3 per cent higher than a year ago.

In terms of regions, buy-to-let investors in Wales achieved the highest yields at 7.6 per cent, followed by the north on 7.4 per cent and the north-west at 7.3 per cent.

John Heron, managing director of Paragon Mortgages, commented: "For the vast majority of landlords, a slow housing market is nothing new … falling prices are spooking first-time buyers and they are delaying house purchase, with tenant demand at high levels as a result."

He added that the strength and variety of the rental market offers people a viable alternative to buying that may not have existed in the past.

This follows a recent assertion from the editor of Landlordzone, Tom Entwhistle, that rising demand and increasing supply is likely to keep the rental market stable.

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