Landlords continue to invest in the market
Property prices rose by nearly 2% in April as landlords continue to invest in the market, according to the latest buy-to-let index from specialist lender Paragon Mortgages.
Cancelling out the dip in March, the rise in April has contributed to a 4.7% house price increase over the past six months. Nationally, homes were 7.62% higher than in April 2005.
However, rising property prices are encouraging rather than deterring investors. John Heron, Paragon Mortgages' managing director, explained: "In all parts of the country, upbeat landlords are buying properties at higher prices, secure in the knowledge that there is good tenant demand out there for the right property in the right place."
"We are seeing good investor activity in many northern cities, as they purchase to meet the accommodation needs of all categories of tenant - students, key workers, families on benefit, and young professionals."
"For the most part, existing landlords are adding to their portfolios, and there are not so many first time landlords. It is perhaps no coincidence that real estate investment is popular at a time of uncertainty in the equity markets."
Average rental income rose by £31 (or 0.3%) from £10,082 in March to £10,113 in April, despite which, rental yields fell from 6.26% to 6.16%.
The latest figures indicate that rental figures have stabilised. April rents were at the same level as six months previously, October 2005.
Looking ahead, Mr Heron predicts a buoyant market as landlords continue to invest: "The positive trend looks set to continue - in our latest landlord survey, investors said that they expected to expand their portfolios in terms of both property numbers and value by 5.6% over the next 12 months."
Property prices rose by nearly 2% in April as landlords continue to invest in the market, according to the latest buy-to-let index from specialist lender Paragon Mortgages.
Cancelling out the dip in March, the rise in April has contributed to a 4.7% house price increase over the past six months. Nationally, homes were 7.62% higher than in April 2005.
However, rising property prices are encouraging rather than deterring investors. John Heron, Paragon Mortgages' managing director, explained: "In all parts of the country, upbeat landlords are buying properties at higher prices, secure in the knowledge that there is good tenant demand out there for the right property in the right place."
"We are seeing good investor activity in many northern cities, as they purchase to meet the accommodation needs of all categories of tenant - students, key workers, families on benefit, and young professionals."
"For the most part, existing landlords are adding to their portfolios, and there are not so many first time landlords. It is perhaps no coincidence that real estate investment is popular at a time of uncertainty in the equity markets."
Average rental income rose by £31 (or 0.3%) from £10,082 in March to £10,113 in April, despite which, rental yields fell from 6.26% to 6.16%.
The latest figures indicate that rental figures have stabilised. April rents were at the same level as six months previously, October 2005.
Looking ahead, Mr Heron predicts a buoyant market as landlords continue to invest: "The positive trend looks set to continue - in our latest landlord survey, investors said that they expected to expand their portfolios in terms of both property numbers and value by 5.6% over the next 12 months."
posted by tony at 4:42 PM
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