Boost for those with buy to let mortgages

Published: May 01, 2008

People with buy-to-let mortgages are benefiting from rising rents, according to new figures.

Paragon's Buy-To-Let Index revealed that average rents have increased by four per cent in the last quarter.

In addition, they have increased by 12 per cent in the last six months, taking the average to £1,000 per month.

On an annual basis, that means the typical rent is £12,041, spelling good news for people with buy-to-let mortgages.

"The backdrop for buy-to-let remains positive across the country - potential residential purchasers are reluctant to buy in the current market or are unable to secure a mortgage and this is fuelling extra demand for rented accommodation," said John Heron, Paragon's director of mortgages.

"The average rental property now generates in excess of £1,000 per month, and this upward trend looks set to continue in the future," he added.

Buy-to-let mortgage holders were boosted by a cut to the base rate of interest in April.