31
Jul
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.
