Buy-to-let rents 'continue to rise'

Buy-to-let landlords saw another month of rising rents and high tenant demand, according to new data.

Figures from Paragon Mortgages reveal that average rents on buy-to-let properties reached £10,702 last month.

This represents a one per cent increase on April's figure and a 9.7 per cent rise on rents charged in November, the study indicates. It shows that May is the sixth consecutive month in which rents have risen.

John Heron, managing director of Paragon Mortgages, attributed the upward trend to a growth in tenants.

"Rents continue their upward trend. It may be that higher borrowing costs are feeding through into rises in rents, but more likely it's a function of the strength of tenant demand," he said.

"The number of people who want to rent continues to grow - due to a range of social, economic and demographic factors, including growth in the student population, more single person households and inward migration."

He added that continued rising house prices, which keep people unable to buy a home of their own, help bolster the demand for rented property.

Paragon Mortgages has provided buy-to-let mortgages since 1995.

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